UPDATE 2-Producers, refiners see prolonged shutdown from Canadian wildfire

Mon May 9, 2016 4:54pm EDT
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* More than 1 mln bpd in Canadian oil supply offline

* 11 oil producers, 3 pipeline operators curb activity

* Restarting production will take weeks, say analysts (Writes through, adds tumble in oil prices after Monday's initial rally, analyst comments)

By Barani Krishnan

NEW YORK, May 9 (Reuters) - Oil producers and refiners braced on Monday for a prolonged shutdown and possible supply constraints from Canada's vast oil sands region as a destructive wildfire continued into a second week.

Cooler and possible wetter weather looked to help firefighters battling the massive blaze as Canadian officials planned to take their first look at oil boom town Fort McMurray.

The town has been ravaged by the nation's most destructive wildfire in recent memory, with about half of the nation's oil sands capacity remained shut as energy firms kept facilities closed as a precaution.

Officials said resuming operations would be a challenge and no timeline had been considered.

"This production is not gone for good, yet when fires are controlled, restarting production will take several more weeks, even without damage," energy analysts at Morgan Stanley said in a note. "The situation is fluid."   Continued...