Oil prices stabilized as the market was affected by OPEC production increases and forest fires in Canada
Oil prices remained stable during early trading on Wednesday, as investors followed the developments of the OPEC alliance's production increase and the impact of forest fires in Canada on global supplies.
Crude prices on the market
Brent crude rose steadily at 65.63 dollars per barrel, while WTI crude rose steadily near the levels of 63.37 dollars, after gains of more than 1% in the previous session, supported by concerns related to oil shipments due to the disruption of Canadian production.
Canada's fires and their impact on supplies
Forest fires in the Canadian province of Alberta disrupted the production of more than 300 thousand barrels per day of heavy crude oil, equivalent to 7% of the total Canadian production.
However, rainfall helped to mitigate the severity of the fires, which allowed some companies to gradually resume operations.
Price support factors
Although part of Canadian production has recovered, there are still signs of a shortage of supply in the spot market, which supports prices.
Comments by US President Donald Trump, who announced his refusal to allow Iran to enrich uranium, also reinforced expectations that the nuclear negotiations will falter, reducing the likelihood that Iranian oil will return to the markets soon.
In addition, expectations of a decline in US oil inventories contributed to supporting prices, although gains remained limited due to other pressure factors.
Challenges facing the ascent
Concerns remain about accelerated increases in OPEC production, which may compensate for any supply shortages.
The ongoing trade tensions between the United States and China, and the impact of tariffs on global economic growth, are also putting additional pressure on the expected demand for oil.
Market forecasts
The trend of oil prices remains linked to the balance of factors between global demand and available supplies, especially as geopolitical events and natural disasters continue to affect the energy sector.
Under these circumstances, prices may experience sharp fluctuations over the coming period as more data on global production and consumption arrives.
