Oil prices jumped Thursday due to a wildfire in an oil producing region of Canada theatening supply in the area.
U.S. oil prices rose 4% to more than $46 per barrel at one point while worldwide Brent crude increased 2.6% to $45.77.
Analysts attribute part of the rise in oil prices to increasing political unrest that's preventing Libyan cargoes from being loaded, which could see output cut by 120,000 barrels per day.
In Canada, almost 90,000 people were forced to evacuate Fort McMurray in the center of Alberta's oil sands region, which is thought to have the largest reserves after Saudi Arabia and Venezuela. Some companies shut down pipelines and production as a safety precaution, which analysts think could amount to 500,000 barrels of supply.
Operators in the area include Royal Dutch Shell, Suncor Energy, Syncrude Canada, Connacher Oil & Gas and Husky Energy.
The news sent shares of oil and gas companies rising, with EOG Resources Inc. (EOG - Get Report) up 3.7%, Occidental Petroleum (OXY - Get Report) advancing 2.8% and Statoil (STO) increasing 2.1% (EOG and OXY also reported earnings).
However, analysts think oil prices will settle back down, maybe even below $40 per barrel, given continued high inventory levels and not enough demand to sop it all up. The Energy Information Administration reported Wednesday that crude stockpiles for the week ending April 29 increased by 2.8 million barrels, twice as much as expected and setting a new record.