Refiners could see supply disruptions in the wake of wildfires that have prompted Alberta oil sands producers to curtail half of Canada’s capacity. Via Reuters, the U.S. and western Canada have enough supply in storage to offset the reduced output in the near term, but prolonged shutdowns could affect producers’ contracts. The U.S. imports approximately 3.5 million barrels of oil per day from Canada. Much of that crude is delivered to refineries in the Midwest and Northeast.
As of Sunday, the fire covered an area roughly the size of Houston and it has forced the evacuations of 80,000 residents from the city of Fort McMurray. Eleven production companies and three pipeline operators have reduced or curbed output, but there has been no significant damage to any oil and gas assets.
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