The massive wildfires that have consumed vast tracts of deeply wooded forests around the oil town of Fort McMurray are spreading further and it is estimated it they have now
engulfed more than 1000 sq km of the forest (about 386 miles).

After all rescuers had failed to arrest the advance of the all-consuming massive fires, it is now the turn of the believers to make a  last-resort attempt by invoking the gods of
rain to have mercy by making it rain so that the infernos could be drenched and put off by the merciful torrents.

As per the estimates, the area under fire is larger than New York City with high winds and the presence of dry vegetative matter facilitating the rapid spread of the raging fires.

Even the fleeing public was cut off at many places due to fire on either sides of the road; their advance was halted and tentatively planned for movement on Saturday.
Chad Morrison, a Fire Prevention Manager’ had predicted that the size of the area under fire would double by Saturday and that the fires would engulf vast tracts of forests to the North East of Fort Mc Murray.

While the current conditions are dry and temperatures hovered around 27* C, it was reported that there are chances of rain on Monday or Tuesday.

Easing the glut; improving the prices.

The global Oil prices had also been affected by the raging wildfires in Canada; Brent announced on Thursday that their crude had breached the $45 per barrel mark
which is  being seen as a direct fallout of the  massive wildfires which have prompted massive evacuations and resulted in cutting the Canadian oil.

This shut down coupled with reduced output in the production of the US crude has encouraged the commodity’s rising rates globally. It is well known that the
oil from the Canadian fields finds its way to USA markets but the evacuation of non-essential employees has resulted in lower or totally shutting down the production.

It is estimated by the industry analysts that this fire has forced reduction of more than 1,00,000 barrels of crude oil only from the Canadian Oil wells
that transport their produce through US routes; the current level has dropped to 8.8 million barrels a day a figure not seen since September 2014.

The investors were optimistic of clearing the supply glut globally on the back of increased commercial inventories in the US. The forecast by some analysts estimate the fall in
production of crude oil to reach morte than one million barrels per day.

The over saturation problem in the markets could be eased remarkably through which the prices will be recovering gradually in the short
term and a proper re balancing of the price structure will be achieved.

However, the market still has enough dumped oil and there is no chance of the supply glut position improving drastically any time soon.

Author: Umrao Singh                                                    Umraoz.wordpress.com

Sunday, 08 May 2016

Written for: Lars-Magnus Carlsson   www.thephilippinepride.com?utm_source=rss&utm_medium=rss

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