Oil paying little condolences to the Canada fire as it leaps higher

Oil prices took an aggressive leap today. The rise was of about 2% on Thursday. The further rise in oil prices has maintained continuity of its steady climb from last week. This is as wildfire continue to rage in the oil sand regions of Canada thus drastically reducing production further from Canada. Although in Canada, the major oil sand facilities are not directly threatened from the wildfire, production has been greatly reduced as major pipelines have been shut down as a result. This is Canadian battle hard to keep the wildfire under check.

From Libya, we had renewed violence in Libya made the possibility of global oversupply quite slim for now. Clashes in Libya has disrupted supplies of major oil cargoes.

These combined cuts seem to breathe more life into oil prices as fear of over supply were quite reduced. The fears of a global oversupply had been quite supported as Iran and Saudi Arabia threaten to increase output capacity in face of tensions between the two major oil exporting nations.

Brent oil went up by 78 cents thus trading at $45.40 for a barrel.