Oil rises more than 1% and ends series of losses with tight supply

Oil prices rose by a dollar a barrel on Monday after three consecutive sessions of declines, driven by the prospect of tight supplies in Canada and elsewhere, although fears of a recession continued to weigh on the market.

Brent crude rose $1.06, or 1.4%, to settle at $75.23 a barrel. US oil closed at 71.11 a barrel, up $1.07, or 1.5%.

Wildfires raged in Alberta, Canada, disrupting large amounts of oil supplies, and prices rose on fears they could get worse, said Mizuho analyst Robert Yawger.

Production of at least 300,000 barrels of oil equivalent per day (boed) was halted last week in Alberta. In 2016, wildfires disrupted production of more than 1 million boed per day in the region.

Global oil supplies could also decline in the second half as the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, plan further production cuts.

“The OPEC+ cuts are likely to have a bigger impact as we move into the summer, as past attempts to balance markets have been offset by seasonal weakness and the release of strategic reserves,” said Peter McNally, an analyst at Third Bridge.