Crude traded near $45 a barrel as Canadian wildfires knocked out about 1 million barrels a day of production, outweighing the new Saudi Arabian oil minister’s pledge to maintain the country’s policy of near-record output.

Futures were little changed after increasing as much as 2.9 percent in New York and 2.5 percent in London. The blaze has led to cuts equivalent to about 40 percent of Canada’s oil-sands production, based on IHS Energy estimates. Ali al-Naimi will be succeeded by Saudi Arabian Oil Co. Chairman Khalid Al-Falih, an ally of Prince Mohammed bin Salman, who has backed the nation’s policy of prioritizing market share over prices and insisted any output freeze must involve Iran.

Oil has rebounded after slumping to the lowest level since 2003 earlier this year amid signs the global oversupply will ease as U.S. output declines. While American production has dropped, the Organization of Petroleum Exporting Countries has boosted supply to more than 33 million barrels a day, underpinned by gains from Iran and Iraq.

“As the dust settles I think we will find it’s business as usual in Saudi Arabia, as Al-Falih is not going to step away from the mantra of market share over price,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen. “Canada has obviously overshadowed this event in the short term, considering the amount of oil being forced to stay below ground.”

West Texas Intermediate for June delivery gained as much as $1.28 to $45.94 a barrel on the New York Mercantile Exchange and was at $44.73 at 1:42 p.m. London time. The contract advanced 34 cents to close at $44.66 on Friday. Total volume traded was 77 percent above the 100-day average.

Font: Bloomberg