Commodity Tips: Oil prices dipped in Asia today after the last day's rally as Canadian oil companies prepare to restart production after being ended by huge wildfires.

The commodity has seen strong swings this week as traders weigh up the effects of the blazes that have torn across the vast oil sands region of Alberta as well as disruptions elsewhere.

Tuesday saw both main agreements rally as data showed output in oil major Nigeria had slumped to a 22-year low because of pipeline sabotage and hike unrest that has seen major companies evacuate staff.

Rebels seeking a fairer share of revenue for locals in the oil-rich southern delta are progressively targeting facilities, posing a fresh security challenge for President Mr. Muhammadu Buhari.

Also, yesterday Canadian officials suggested output in could take time to return to normal after the fires.

Alberta Premier Rachel Notley said convenience could come back online "in the coming days and short weeks ahead," after a meeting with oil company chief.

But analysts said they expected prices to flatline for the time being.

"The sentiment around buyers and sellers in the market is that they do think the disruptions are a temporary obstacle.

Longer-term, should oil companies continue production, they are expecting oil prices to hover around USD40," CMC Markets senior trader Alex Wijaya told AFP.

At around 0445 GMT, US benchmark West Texas Intermediate for delivery in June was down 32 cents, or 0.72%, at USD 44.34 and Brent crude fell 27 cents, or 0.59 percent, trading at USD 45.25 a barrel.

West Texas Intermediate soared 2.8% and Brent climbed 4.3 percent yesterday.

Investors are now waiting for the release of United State Energy Information Administration's stockpiles report later in the day for an idea about demand in the world's biggest oil consumer.

A report Tue from the American Petroleum Institute (API) indicated inventories had risen previous week. Oil prices have been hammered over the past two years by weak demand, a huge supply glut, overproduction and a slowdown in the universal economy, particularly China.

While the black gold is up from near 13-year lows in February, it is well down from the levels above US$ 110 touched in mid-2014.