Alberta's oil production drops to two-year low in May

Alberta's crude production fell to its lowest level in two years in May, as wildfires and maintenance work reduced output from the oil sands, Bloomberg reports.

According to the news agency, crude output in Canada's Alberta province fell by 397,000 barrels to 3.61 million barrels per day in May. Oil sands production dropped by 384,000 barrels daily.

Wildfires, including those near Cold Lake, impacted production. The emergency forced Cenovus Energy, Canadian Natural Resources, and MEG Energy to cut output by 350,000 barrels per day in late May and early June, Bloomberg notes.

Lower output from Canada, the world's fourth-largest fuel exporter, combined with Mexico's production drop and Venezuela's export ban has driven up heavy crude prices.

Alberta's Western Canadian Select (WCS) discount to US benchmark WTI crude narrowed to under $10 per barrel from April through June. The five-year average stood at $15 per barrel, General Index states.