Oil futures settled at their lowest level in a week on Monday as concerns surrounding recent disruptions to crude production eased, renewing expectations that global supplies will continue to outpace demand. West Texas Intermediate crude for delivery in July declined by 33 cents to US$48.08 a barrel on the Nymex, while July Brent crude fell 37 cents to US$48.3 a barrel, as per MarketWatch.
Supply outages in North America and Africa have been largely responsible for the recent rise in oil prices. Amid cooler temperatures and rainfall, the wildfires in Canada appear to be under control. Hence the evacuation orders have been lifted and oil workers can return to work. However, it could take a number of weeks to return crude outages of more than 1 mln bpd back to normal levels- supply deficit from Canada will likely be in place for a while yet. Analysts said the uptrend in prices may entice some U.S. shale producers to start new projects.