Oil prices rose a dollar a barrel on Monday, after three straight sessions, as it drew support from the prospect of lower supplies in Canada and elsewhere, but recession fears continued to weigh on the market.

Brent crude futures were up $1.06, or 1.4 percent, at $75.23 a barrel in settlement, and U.S. West Texas Intermediate crude futures were up $1.07, or 1.5 percent, at $71.11.

Oil price today

Wildfires raged in Canada’s Alberta and Mizuho analyst Robert Yoger said it led to large-scale crude oil supply shutdowns and higher prices amid fears of further rises.

Global crude supplies are also likely to fall in the second half of the year as the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance, which includes allies including Russia, plan further production cuts.

“The OPEC+ cuts are likely to have more impact as we enter the summer, as previous efforts to balance markets have been offset by seasonal weakness and withdrawals from strategic reserves,” said Peter McNally, analyst at Third Bridge.

U.S. Energy Secretary Jennifer Granholm told members of the House of Representatives on Thursday that the U.S. may resume buying oil for strategic reserves after ending sales authorized by Congress in June, as concerns about a slowdown in the global economy fueled oil prices.

Last week, the two benchmarks fell for a fourth week in a row, the longest run of weekly declines since September 2022, amid fears the U.S. will enter recession and historic default risks in the first two weeks of June.