Massive Fire Fixes World Oil Imbalance Temporarily

[Economy 52,861]

http://www.financialpost.com/m/wp/blog.html?b=business.financialpost.com/news/energy/fort-mcmurray-fires-knock-out-third-of-canadas-oil-capacity-and-close-major-pipelines

 

The massive fire that engulfed the entire city of Fort McMurray (Canada's Oil Capital) have so far resulted in over 1 Million barrels of oil production a day to be shut down. As fire moves north, more operations may soon be shut down.

 

The reduction in Canadas output so far is enough to eliminate the daily Global surplus of oil. If all the oil sands operations shut down, there will be a daily shortage

 

However since crutial infrastructure to Oil Sands operations have so far been protected, the lost production will be temporary

 

Oil rallied today and yesterday thanks to the fires.