May 6, 2016 2:07 PM

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Oil rallies as Canada fire and Libya violence threaten supply

A huge wildfire near Canada's oil sands region, and escalating tensions in Libya stoked concern among investors over a near-term supply shortage, driving crude oil prices higher. Brent crude oil futures rose 1.19 dollars, to 45.81 dollars a barrel. U.S.crude rose 1.45 dollars, to 45.23 dollars a barrel. Analysts said the market was becoming much more sensitive to supply disruptions. Unplanned outages within the Organization of the Petroleum Exporting Countries, stood above 2 million barrels per day, the highest in at least five years. U.S. production continues to fall, with the latest official figures showing a decline by over 8 percent since mid-2015.

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