Oil Steadies With Focus on Canada Wildfires, US Crude Stockpiles

Link copied

Oil Steadies With Focus on Canada Wildfires, US Crude Stockpiles.

commodities :: 2025-06-04 :: source - bloomberg

By Bloomberg News

(Bloomberg) -- Oil steadied after a two-day gain as rains slowed the growth of some blazes that had disrupted Canadian crude production.

Most Read from Bloomberg

Brent traded around $65 a barrel after closing at a three-week high on Tuesday. One Canadian operator restarted a site after shutting down last week, with wildfires halting about 7% of output at one stage in the world’s fourth-largest producer.

Separately, the American Petroleum Institute reported US crude inventories dropped by 3.28 million barrels last week, according to a person familiar with the figures. That would be the biggest draw since March if confirmed by official data later on Wednesday.

Oil rose at the start of the week after a decision by OPEC+ to increase production in July was in line with expectations, easing concerns over a bigger hike. However, prices are still down about 12% this year on fears around a looming supply glut, while traders continue to monitor US trade tariffs as President Donald Trump said his Chinese counterpart is extremely hard to make a deal with.

“Spot fundamentals are holding up better than expected and a de-escalation in trade tensions has bolstered the outlook for still-resilient demand, while supply has been largely in line with expectations,” Barclays analyst Amarpreet Singh wrote in a report. “Geopolitical tensions are simmering in the background, with risks to fundamentals skewed to the upside, as Russian and Iranian oil exports remain elevated.”

Saudi Arabia led increases in OPEC oil production last month as the group began its series of accelerated supply additions, according to a Bloomberg survey. Nevertheless, the hike fell short of the full amount the kingdom could have added under the agreements.

The OECD, meanwhile, cut its outlook for global economic growth on Tuesday, with the US among the hardest hit. Trump is pushing ahead with his tariffs, signing a directive that doubles rates on steel and aluminum.