Alberta's wildfire and the oil sands industry


(MENAFN- ProactiveInvestors)

In the same way fire creeps slowly at first before reaching a flaming crescendo so the news story of Alberta Canada's biggest wild fire is playing out.

On Friday the flames were engulfing an area 1010 sq km and the word is that could double by Saturday. It is certainly one of the biggest current trending stories across all platforms.

It has put the province of Alberta in Western Canada into chaos and analysts reckon has taken around 1.1 million barrels of oil from the oil sands industry there out of production hence the rise in the crude price. That is around half of Alberta's daily oil production.

Alberta oil prices also rallied with the marker Western Canada Select up almost $3 to $33.83 a barrel - reportedly the highest level since October last year.

But of course the knock-ons affect the whole Canadian economy and the Bank of Montreal has already lowered the country's growth projections for the second quarter in response

In terms of some companies Husky Energy Inc (TSE:HSO)  share s are down 0.59% to $15.21 after earlier this  week cutting production at its Sunrise oil sands project by a  third to 10000 bpd from 30000 after a pipeline was closed

Meanwhile Suncor Energy (TSE: SU) Canada's largest oil producer said it had issued various force majeure notes to those suppliers and customers affected.

 

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