Teacher Yu Zhu: U.S. crude oil and spot heavy oil are facing resistance at high levels and showing downward pressure.

Market Recap: On Friday, U.S. crude oil and spot heavy oil retraced to their previous highs before plunging rapidly, forming an M-top pattern; the daily candlestick was a small bearish line near the peak, together with the one from May 18 forming a 'double-star' topping pattern. Trading recommendation: Sell on rallies. Fundamental Analysis: Oil prices rose for the second consecutive week, as wildfires in Canada and other factors pushed this month’s global unplanned oil production cuts to at least 3.93 million barrels per day—the highest in five years. Military activity in Nigeria has driven the country’s oil exports below 1.4 million barrels per day, the lowest level in over 22 years. Wildfires have shut down approximately 1 million barrels per day of Canadian oil production, although output is gradually recovering. Libyan oil production has been disrupted by domestic conflict. However, supply restoration in all three countries is progressing far faster than initially anticipated. Owing to cooler weather and rainfall, the wildfire threat in northern Alberta, Canada, had further subsided by Thursday; the blaze had moved away from oil sands production facilities and a nearby evacuated town. Officials reported that the uncontrolled fire had burned over 1.25 million hectares but remained distant from critical petroleum infrastructure. Firefighters successfully contained the blaze outside the two major oil sands production zones. Chad Morrison, Chief Wildfire Officer at Alberta Forestry, stated: “The threat to communities and oil sands facilities has clearly diminished. We contained all major fires in critical areas yesterday.” This implies that oil sands production will gradually resume—and possibly fully recover within the coming days. The wildfires did not damage production infrastructure, but forced several major oil sands producers to halt operations for over two weeks, cutting Canada’s daily crude output by at least 1 million barrels—roughly 40% of its total oil sands production. The fires also prompted some operators to abandon planned restarts. Libya’s prolonged export crisis also appears poised for resolution: oil exports from the Marsa El-Hariga port in eastern Libya are set to resume on Thursday, and daily output may soon rise to 300,000 barrels. In Nigeria, ExxonMobil’s Qua Iboe offshore platform ceased operations on the 19th due to armed militant threats. Yet according to Bloomberg, tankers are reportedly scheduled to load Nigerian Qua Iboe crude today, as “those who had blocked the bridge leading to the Qua Iboe field are no longer present.”

Wildfires broke out near Canada’s oil sands hub, prompting evacuation warnings.

A wildfire near Fort McMurray, Alberta, prompted local authorities to issue warnings urging residents to prepare for possible evacuation if the fire continues to spread. According to Bloomberg, the blaze erupted near a town located 25 miles from Fort McMurray. A report recalled that eight years ago, another wildfire forced tens of thousands of locals to evacuate and halted roughly 1 million barrels of daily oil production. Canada also experienced wildfire-related shutdowns last year. In March, fires led to the suspension of over 300,000 barrels per day of output—3.7% of national production. At that time, Alberta had 110 active wildfires, 36 of which were out of control. Government data shows some of these blazes remain active; media outlets have dubbed them “zombie fires.” Even during winter, they appear to smolder beneath snow, sustained by abundant peat moss. Zombie fires are not uncommon, but reports indicate their number this year is unusually high. According to a February BBC report, most zombie fires typically extinguish before spring—but as of January, 106 were still burning.

Wildfires Near Alberta Oil Sands Controlled After Rainfall

Jun 1, 2026

Wildfires near Alberta's oil sands have been brought under control following heavy rainfall, with major operators like ConocoPhillips reporting no direct operational impacts despite proximity to significant production volumes.

bloomberg

2026-06-01

Wildfires Near Alberta Oil Sands Controlled After Rainfall

Wildfires Near Alberta Oil Sands Controlled After Rainfall

FAQ