Oil prices are up today on news of a wildfire limiting production in Alberta Canada near the town of Fort McMurray. Tens of thousands of acres are reportedly ablaze causing most towns in the area to be evacuated and oil sand producing companies to stop operations.
This on top news from Libya of increased fighting between the east and west both wanting each other’s oil revenues. The unrest is expected to decrease the country’s exports already lower in recent years due to the ongoing conflict.
This short term oil rally has crude, gas and distillates all on the rise in spite of the growing stockpiles of inventory still lingering around the world. Cushing, Oklahoma inventory is over 93% full and hasn’t showed signs of emptying.
As of 9am this morning, Crude is trading at 45.87/bbl. RBOB is up $0.0345/gal to $1.5209. ULSD is up $0.0465/gal to $1.3733. Although the market is up now, these short term news stories can’t sustain the long-term supply glut still lingering.