|
Brent crude has fallen more than 7 percent from a 2016 high hit
on Friday in response to rising output from the Organization of
the Petroleum Exporting Countries <OPEC/O>, signs of economic
slowdown in the United States and Asia, and a stronger dollar.
"It would not come as any surprise if speculative financial
investors were to take profits against this news backdrop," said
Commerzbank analyst Carsten Fritsch.
"Oil prices could receive support from the wildfires in the
Canadian oil province of Alberta," he said.
Brent crude <LCOc1> was up 10 cents at $45.07 at 1126 GMT. It
reached a 2016 high of $48.50 on Friday, but settled lower on
that day and fell again on Monday and Tuesday. U.S. crude <CLc1>
was up 9 cents at $43.74.
The Canadian province of Alberta was evacuating the entire
population of Fort McMurray where a wildfire was taking hold in
the heart of the country's oil sands region, prompting some
companies to cut output.
Suncor Energy <SU.TO>, whose oil sands operations are closest to
the city, said its main plant north of Fort McMurray, was safe,
but it was reducing crude production in the region to allow
employees and families to get to safety.
While total OPEC output rose in April, outages around the world
have been supporting prices. The Canada disruption adds to
supply losses in Nigeria and Iraq, concern about renewed losses
in Libya and fears that Venezuela's cash crunch could hit the
OPEC member's output.
Nonetheless, increasing inventories suggest supply is more than
ample for now.
A report on Tuesday from the American Petroleum Institute said
U.S. crude inventories rose by 1.3 million barrels. Stocks in
the previous week were at a record high. Still, this was not as
large as the 1.7 million-barrel increase analysts expected.
Later on Wednesday, the government's inventory report will be in
focus for confirmation of the inventory move. The Energy
Information Administration report is due at 1430 GMT.
(Additional reporting by Henning Gloystein; editing by David
Clarke)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
