Key US Oil Gauges Strengthen as Canada Fires Imperil Vital Flows

A wildfire labeled HWF040 is burning east of La Crete Ferry in Alberta, Canada.

Source: Alberta Wildfire

Key gauges of US oil market strength are soaring as wildfires in Canada risk flows to critical American storage hubs, limiting the impact of OPEC+ supply increases.

In a move suggesting traders see near-term demand outstripping supply, West Texas Intermediate’s prompt spread — the price difference between futures for July delivery versus the next month — surged as high as $1.20 a barrel on Monday, the biggest premium since January.