Wildfires led to 7% drop in Canada's oil output

Bloomberg reports that wildfires in Alberta, Canada's key energy producing region, have reduced the country's heavy oil output by nearly 350,000 barrels per day. This accounts for approximately 7% of Canada's total oil production.

The Caribou Lake Wildfire and other uncontrolled blazes have spread, according to the news agency. On Monday morning, the fires were located approximately 10 kilometers from oil facilities producing about 470,000 barrels of crude daily.

The halted Canadian production nearly equals the volume that OPEC+ countries agreed on Saturday to restore to the global market. Moreover, the world's heavy oil supplies are already under pressure, as noted by Bloomberg. Operators of oil sands in Canada have recently reduced production for regular maintenance. Meanwhile, tighter restrictions have limited the supply of this type of crude oil from Venezuela.

Some companies, such as Cenovus Energy, have announced plans to resume oil production in the near future.