Oil hit two-week highs as Canada’s wildfires offset OPEC+ supply boost

Crude oil prices surged over 1% on Tuesday, climbing to their highest levels in two weeks as escalating wildfires in Canada’s oil sands region forced significant production shutdowns, overshadowing a planned output increase by OPEC+.

Brent crude futures settled $1.00 higher, or 1.5%, at $65.63 a barrel, 

 WTI crude gained 89 cents, or 1.4%, to close at $63.41.

The rally came as wildfires in Alberta — Canada’s energy heartland — led to the suspension of nearly 350,000 barrels per day of heavy crude output, tightening North American supply at a critical juncture. 

Strong labour market data out of the US also buoyed sentiment, with investors interpreting resilient hiring as a sign of continued economic strength and oil demand. Additionally, crude found further support from currency markets. The US dollar index dipped to its lowest point since July 2023 on Monday, making dollar-denominated commodities more attractive to foreign buyers — even as the greenback showed a modest rebound on Tuesday.

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