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5/5/2016, 9:54 AM (Source: TeleTrader)
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Oil jumps with spread of Canada wildfire, blocked exports from Libya

Disruption in supply of crude in Alberta helped bolster prices of the commodity on Thursday, paired with news that the newest escalation in the dispute over oil shipments from Libya may drive down output. Concerns offset the effect of yesterday's report from the United States Energy Information Administration that commercial inventories rose by 2.8 million barrels last week alongside a buildup of gasoline reserves.

The oil sands region in Canada saw evacuation of tens of thousands of residents, including workers in energy industry, which led to a decline in production as the fire was engulfing Fort McMurray (pictured) and other urban areas. Two rival governments in Libya renewed tensions, which reflects on output in the already crippled oil sector.

The value of the dollar against a basket of major currencies rose only slightly after a two-day rally, helping today's jump in futures of crude. The greenback's index added 0.05% at 9:48 a.m. CET and the Canadian dollar firmed together with the prices of the country's main export product. The so-called loonie advanced 0.34% against the euro and 0.21% versus its U.S. counterpart. WTI oil for delivery in June surged 2.69% to $45.29 per barrel at 9:41 a.m. CET. At the same time, Brent for settlement in July climbed 2.07% to $45.85 per barrel.

 

Image: EPA / Twitter.com / Jeromegarot

Baha Breaking News (BBN) / IT