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by Stockwatch Business Reporter

U.S. markets were closed for Memorial Day. West Texas Intermediate crude for July delivery, the benchmark in North America, added 10 cents to $59.82 in electronic trading on the New York Merc, while Brent for July, the international benchmark, added 14 cents to $65.51 (all figures in this para U.S.). Western Canadian Select, Canada's heavy oil benchmark, traded at a discount of $9.75 to WTI ($50.07), up from a discount of $9.90. Natural gas for June, the international benchmark, lost 4.7 cents to $2.84. The TSX energy index lost 1.26 points to close at 223.89.

The Lac La Biche forest fire continues to rage in Alberta, shutting down about one-10th of total oil sands production. Cenovus Energy Inc. (CVE: $20.95) and Canadian Natural Resources Ltd. (CNQ: $38.40) announced that they have been affected. Their operations are not damaged, but the fire, which has doubled in size over the last two days, has cut off road access. As a result, Cenovus closed its Foster Creek operations, which contribute a net 67,500 barrels a day, nearly half of its oil sands output. (Cenovus produced 218,000 barrels a day in the first quarter, of which 144,000 came from the oil sands.) Canadian Natural Resources shut in some of its production at its Kirby South and Primrose assets, affecting 98,000 barrels a day, out of total production (in the first quarter) of 898,000 barrels a day. This brings the amount of shut-in production to 233,000 barrels a day, roughly one-10th of the 2.3 million barrels a day that CAPP (the Canadian Association of Petroleum Producers) expects the oil sands to produce this year. More shut-ins may be coming. The massive Cold Lake operations of Imperial Oil Ltd. (IMO: $49.77) are just south of Primrose, as are the Tucker operations of Husky Energy Inc. (HSE: $24.89), while the Jackfish operations of Devon Energy lie farther north. Representatives of each of those companies told various news outlets that they are watching the fire closely, but have not been affected yet. Alberta Environment and Sustainable Resource Development lists the status of the fire as "out of control." Its spokespeople have not been able to estimate when that will change.

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