Canadian wildfire threatens oil sector

The blazing and devastating wildfire that has already forced thousands out of their homes in towns and communities in the state of Alberta in Canada, is not having an impact on the oil industry.

Oil producers and refiners are suffering from supply constraints as the fire has shut one half of Canada's vast oil sands capacity. BP and other big oil firms have already warned that they will not be able to deliver on some of the contracts. Regional energy firms continued to shut facilities in the area as a precaution and the future prices have risen 2 per cent in early trading.

Statoil and Husky have also cut output earlier at their regional facilities. They are a part of 11 production firms and three pipeline operators that have reduced activities after the fire forced more than 1 million barrels in capacity to go offline. Oil prices rose 2 percent in Asian trade and Brent rose above $46 a barrel and U. S. crude was trading at over $45.

Experts have said that cooler weather, light rain and favourable winds helped fight fire on Sunday as fire engulfed theAlberta's oil sands town of Fort McMurray forcing residents to evacuate the city.