Oil prices rose in early trading on Wednesday as major wildfires threatened Canada's oil sands region and the market expected a decline in U.S. crude and gasoline inventories later in the day.
price movement
Brent crude futures rose 60 cents, or 0.7 percent, to $82.99 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 67 cents, or 0.9 percent, to $78.73 a barrel by 0016 GMT.
A massive wildfire was approaching Fort McMurray, the centre of Canada's oil sands industry, which produces about 3.3 million barrels a day, or two-thirds of the country's total, and thousands in the suburbs were told to evacuate.
Meanwhile, U.S. producer prices rose more than expected in April. While the prospect of an interest rate cut is less certain, Federal Reserve Chairman Jerome Powell said the bank is still unlikely to have to raise rates further.
US consumer price data, as well as US crude oil and gasoline inventories, are due out on Wednesday.
According to figures from the American Petroleum Institute, US crude oil and gasoline inventories fell last week.
The American Petroleum Institute showed that crude inventories fell by 3.104 million barrels in the week ending May 10. Gasoline stocks fell by 1.269 million barrels, and distillate stocks rose by 673,000 barrels.
In the Middle East, Israeli tanks pushed into Rafah in Gaza, reaching some residential areas where more than a million people have taken refuge, and its forces bombarded the north of the Strip in some of the most violent attacks in months.
