WTI hovers around $79.50 amid concerns of supply disruptions following Canada’s wildfires

West Texas Intermediate (WTI) crude Oil price trades around $79.50 per barrel during Tuesday's Asian session. These gains in Oil prices could be attributed to uncertainties surrounding crude Oil supply amid wildfires in remote western Canada. Concerns arose regarding the country's production capacity of 3.3 million barrels per day (bpd). Firefighters on Monday were in a race against time to contain blazes in British Columbia and Alberta, which are situated close to the heart of the country's Oil sands industry.

The Oil supply could also be affected as Hayan Abdul Ghani, Deputy Prime Minister for Energy Affairs and Minister of Oil of Iraq, reiterated Iraq's dedication to the voluntary Oil production cuts agreed upon by the Organization of the Petroleum Exporting Countries (OPEC), Reuters cited Iraqi state news agency.

In the United States (US), Federal Reserve (Fed) officials have suggested that interest rates may stay elevated for a prolonged duration, a move that could potentially impact economic growth and diminish Oil demand in the United States (US), the world's largest Oil consumer. Fed Vice Chair Philip Jefferson echoed this sentiment on Monday, advocating for the retention of current interest rates until signs of inflation easing become more apparent.

On Tuesday, investors are anticipating the release of the OPEC Monthly Market Report (MOMR), which delves into significant factors influencing the global Oil market and offers insights into crude Oil market trends for the upcoming year. Additionally, attention will be on the API Weekly Crude Oil Stock report, which will provide comprehensive data on total US and regional refinery operations and the production of major petroleum products.