Oil prices edged up a dollar a barrel on Monday after losing three straight sessions, buoyed by the prospect of tighter supplies in Canada and elsewhere, although recession fears remained on the market.
Brent crude futures rose $1.06, or 1.4%, to $75.23 a barrel, while US West Texas Intermediate (WTI) crude rose $1.07, or 1.5%, to $71.11 a barrel.
Wildfires ravaging Alberta in Canada shut down large quantities of crude supplies, and prices soared on fears that they would get worse, according to Robert Yoger, an analyst at Mizuho.
At least 300,000 barrels of oil equivalent per day (boepd) of output were shut down in Alberta last week. In 2016, wildfires knocked out more than one million boepd of production.
Global crude supplies may shrink further in the second half as the Organization of the Petroleum Exporting Countries and its allies including Russia, collectively known as OPEC+, pursue further production cuts that could lead to sour crude oil prices. reducing the quantity.
Last week, the two benchmark contracts fell for a fourth week in a row, the longest streak of weekly declines since September 2022, on concerns the US could slip into recession amid the risk of a historic default in early June.
Fears of a slowdown in the world economy limited gains in oil prices.