As Canada blaze grows, fears about crude supplies deepen, prices rally


  • World
  • Monday, 09 May 2016

A fire truck drives by the wildfires near Fort McMurray, Alberta, Canada, May 7, 2016. REUTERS/Mark Blinch

NEW YORK (Reuters) - Oil producers and refiners braced on Monday for further supply constraints from the wildfires that have shut one half of Canada's vast oil sands capacity and forced BP and other big oil firms to warn they would not be able to deliver on some contracts.

While Sunday's cooler weather, light rain and favourable winds helped control the advance of the blaze that razed neighbourhoods in Alberta's oil sands boomtown, Fort McMurray, regional energy firms continued to shut facilities as a precaution, sending futures prices up 2 percent in early trading.

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