A wildfire threatening Canada's oil sands region and escalating tensions in Libya sparked concern among investors over a near-term supply shortage, driving crude oil prices up by 3%. 

Brent crude futures rose $1.58 on the day to $46.20 a barrel, while US West Texas Intermediate (WTI) futures CLc1 rose $1.66 to $45.44. 

The wildfire has forced the evacuation of all 88,000 people in the western Canadian oil city of Fort McMurray and burned down 1,600 structures, and has the potential to destroy much of the town, authorities said. 

With evacuees being told to head north towards Alberta's oil sand fields, and some pipelines in the region being shut as a precaution, output at several facilities has been disrupted.

The volume of the decline was unclear. 

Meanwhile, investment firm ETF Securities said unplanned outages within the Organisation of the Petroleum Exporting Countries, including Libya, stood above 2 million barrels per day (bpd), the highest in at least five years. 

Libya's already crippled oil production is at risk of further disruption from a stand-off between eastern and western political factions, which prevented a Glencore cargo from loading. 

US production continues to fall, with the latest official figures showing a decline by over 8% since the middle of 2015 to 8.825 million bpd.