Banks believe in devastating economic effects of the Great Fire in Canada – Dagens Industri

The fire is one economic blow to the Canadian economy. Alberta’s heavy oil and the country’s leading banks believe that the fire could affect oil production in the oil-rich state.

Bank of Montreal has cut its GDP forecast for Canada and the second quarter from 1.5 percent to 0. the bank, which adds a caveat that more information is needed, warn that the fire can seriously disrupt oil production.

Royal Bank of Canada estimates that as much as one million barrels of oil per day can be shut down due to fire . Several oil companies have already flagged for force majeure on shipments from the region, including the Norwegian Statoil.