Crude settled at the lowest level in two weeks as shifting winds moved wildfires away from oil-sands facilities in Alberta, reducing concern that production cuts would make a substantial dent in U.S. oil stockpiles.
Futures erased intraday gains and declined 2.7 percent in New York. Wildfires in Canada have led to cuts equivalent to about 40 percent of oil-sands production, based on IHS Energy estimates. The impact of a reduction in output may be muted due to U.S. crude stockpiles holding at the highest level since 1929. Once fires in Alberta are under control, the majority of oil sands mining projects can be back to normal production levels in about one week, Morgan Stanley said.