International oil prices extended their gains on Tuesday, largely driven by the impact of Canadian wildfires.
Wildfires in Canada’s Alberta province were estimated to have halted heavy crude oil production by approximately 350,000 barrels per day, raising concerns about potential supply disruptions.
This reduction in Canadian oil output is just shy of the 411,000 barrels per day increase that the Organization of the Petroleum Exporting Countries Plus (OPEC+) agreed upon on May 31, nearly offsetting much of the production boost from OPEC+.
Adding to market tensions, the lack of progress in nuclear negotiations between the U.S. and Iran, as both sides reaffirmed their differing stances, intensified worries about potential oil sanctions on Iran.
As a result, Brent crude, the global benchmark, settled at 65.63 USD per barrel for August delivery, up 1.00 USD (1.55%) from the previous session. This marks the highest price since May 14.
West Texas Intermediate (WTI), the U.S. benchmark, closed up 0.89 USD (1.42%) at 63.41 USD per barrel for the July contract, reaching its highest level since May 13.
