Canada wildfire knocks out nearly 1.07 million bpd of crude capacity

PanARMENIAN.Net - Oil producers and refiners braced on Monday, May 9 for a prolonged shutdown and possible supply constraints from Canada's vast oil sands region as nearly 1.07 million barrels per day of capacity remained offline with a destructive wildfire continuing into a second week, Reuters reports.

Cooler and possibly wetter weather was set to help firefighters battling the massive blaze as Canadian officials got their first glimpse of the oil sands boomtown of Fort McMurray since the blaze erupted and saw a "heartbreaking" number of destroyed homes but a largely intact downtown business area.

About half of the nation's oil sands capacity remained shut, according to Reuters calculations, as energy firms kept facilities closed as a precaution, forcing at least three major oil companies to warn they will not be able to meet all contracts for Canadian crude.

Syncrude Canada Ltd will cut forecast May crude production volumes by some 35 percent, three trading sources familiar with the matter said on Monday.