Oil prices to rise ‘firmly’ above US$50 per barrel on supply disruptions: Raymond James

, Crisis

Eventually, Raymond James’ analysts expect the Fort McMurray wildfire that has shut in over 1 million barrels of daily oilsands production per day for the last two weeks to force 30 million barrels of oil out of storage in key hubs.

CALGARY – Oil prices should rise “firmly” above US$50 per barrel due to wildfires around Fort McMurray and other oil-supply disruptions around the world, according to new research from Raymond James.

The firm’s analysts note, however, the Fort McMurray fire will not affect crude oil markets immediately because oil travelling through a pipeline takes weeks to arrive at key storage hubs in the United States.

Eventually, Raymond James’ analysts expect the wildfire that has shut in over 1 million barrels of daily oilsands production per day for the last two weeks to force 30 million barrels of oil out of storage in key hubs.

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