Oil prices rise after tragic Canadian fire

Due to the outbreak of fire in Alberta, one of Canada’s most resourceful provinces, the prices of crude oil are rising.

On Thursday, a state of emergency was declared in the province of Alberta in Canada after a wildfire forced all 88,000 residents of Fort McMurray to flee.

According to BBC, the fire, which broke out on Sunday in the heart of the country’s oil sands region, has gutted 1,600 buildings, including a new school.

In the midst of all these, oil prices are rising due to a cut in output from Canada, which is the fourth largest oil-producing country in the world.

According to Bloomberg, Western Canadian Select, the benchmark price for oil sands production, strengthened to a $12.85-a-barrel discount to US West Texas Intermediate on Wednesday, the smallest difference in two months.

The fire in the country is projected at cutting Canada’s production output by about 500,000 barrels per day, from its 2.5 million barrels to a position under two million barrels per day.

Brent crude, the international benchmark for oil, surged by 98 cents on Thursday, to settle at $45.60 at about 4pm Nigerian time on the global market.

US oil, on the other hand, rose by $1.18 to $44.96 per barrel on Thursday.

The fire incident is the biggest in the history of Alberta, with hotels being razed and a gas station exploding dramatically.

This is a major challenge for Justin Trudeau, the new prime minister of Canada.