The oil market climbed Tuesday, rebounding from the previous day's heavy losses that were triggered by receding concerns over wildfires in Canada's crude-producing Alberta region.
Around 1700 GMT, US benchmark West Texas Intermediate for delivery in June rallied 87 cents to US$44.31 a barrel.
Brent North Sea crude for July added US$1.43 to US$45.06 a barrel compared with Monday's close.
"Canadian wildfires have been subsiding but the associated downdraft in oil prices appears to have moderated, helped by the possible supply impact of an outage in Nigeria," said Jasper Lawler, analyst at CMC Markets.
Canadian authorities were focusing on restoring output after the fires that have raged for a week forced oil companies in the area to shut down operations, slashing production by one million barrels a day.
Prices had slumped Monday, with Brent shedding 3.8% of its value, also as dealers bet that new Saudi oil minister Khaled al-Falih could spark greater production from the Opec heavyweight.
Over the weekend, Saudi Arabia unexpectedly replaced veteran oil minister Ali al-Naimi with the close ally of Deputy Crown Prince Mohammed bin Salman.
"Saudi Arabia has stated that an oil freeze deal could only materialise if Iran partakes too, but with Iran on an ongoing quest to reclaim lost market share, expectations of a successful deal have been heavily diminished," said analyst Lukman Otunuga at traders FXTM.
The changing of the guard came ahead of a meeting next month of the Organization of the Petroleum Exporting Countries and followed a failure last month by major producers to agree on freezing output despite a global supply glut.
State oil giant Saudi Aramco, which could soon become the world's largest listed company, will keep expanding despite low crude prices, its president said Tuesday.
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Around 1700 GMT, US benchmark West Texas Intermediate for delivery in June rallied 87 cents to US$44.31 a barrel.
Brent North Sea crude for July added US$1.43 to US$45.06 a barrel compared with Monday's close.
"Canadian wildfires have been subsiding but the associated downdraft in oil prices appears to have moderated, helped by the possible supply impact of an outage in Nigeria," said Jasper Lawler, analyst at CMC Markets.
Canadian authorities were focusing on restoring output after the fires that have raged for a week forced oil companies in the area to shut down operations, slashing production by one million barrels a day.
Prices had slumped Monday, with Brent shedding 3.8% of its value, also as dealers bet that new Saudi oil minister Khaled al-Falih could spark greater production from the Opec heavyweight.
Over the weekend, Saudi Arabia unexpectedly replaced veteran oil minister Ali al-Naimi with the close ally of Deputy Crown Prince Mohammed bin Salman.
"Saudi Arabia has stated that an oil freeze deal could only materialise if Iran partakes too, but with Iran on an ongoing quest to reclaim lost market share, expectations of a successful deal have been heavily diminished," said analyst Lukman Otunuga at traders FXTM.
The changing of the guard came ahead of a meeting next month of the Organization of the Petroleum Exporting Countries and followed a failure last month by major producers to agree on freezing output despite a global supply glut.
State oil giant Saudi Aramco, which could soon become the world's largest listed company, will keep expanding despite low crude prices, its president said Tuesday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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