“Oil rose Monday morning as the wildfires in Canada continued to wreak havoc throughout the city of Fort McMurray. Production was halted in some of the major oil facilities in Canda’s oil sands, resulting in a loss of about 1 million barrels in daily production. The impact of this drove crude over $45 a barrel this morning.
a man that could merely mutter a brief sentence and it would have the market going wild’
Another fundamental aspect investors are looking at in the crude oil market is the dismissal of the Saudi Arabian oil minister Ali al-Naimi, with Khalid Al-Falih being appointed as the minister of energy, industry and mineral resources. After Al-Falih’s appointment he made it clear that he will be maintaining Saudi Arabia’s current oil policy, a policy which has seen the country prioritise sales over prices.
The effects this appointment will have on the market is unclear, with the loss of production in Canada overshadowing the al-Naimi decision but it has left analysts divided on how the market will react. Will they see this as replacing a minister that was near the end of his career anyway or will they see it as losing one of the stabilizing forces within the industry, a man that could merely mutter a brief sentence and it would have the market going wild. Either way, we are in for some interesting ahead within the industry.