Nathan Bomey

USA TODAY

A devastating wildfire that has emptied a Canadian town of some 88,000 people in the heart of the country's oil sands region sent petroleum prices upward Thursday.

West Texas Intermediate crude oil, the U.S. benchmark, was up 2.8% to $45.02 a barrel after rising as high as $46.07. Brent crude, the world benchmark, rose 2.6% to $45.77.

Any signs of incidents that could throttle oil output are viewed by investors as crimping demand, which typically jolts prices.

The wildfire that has already destroyed some 1,600 structures and driven out the population of the town of Fort McMurray is the largest in Canadian history, a Natural Resources Canada official told USA TODAY on Wednesday.

Raging Canadian wildfire drives out newly resettled evacuees

Fort McMurray is located in the heart of Alberta oil sands, the third largest reserves of oil in the world behind Saudi Arabia and Venezuela.

Oil prices also got a boost from increased tension in Libya, according to several reports. Reuters said that the country's already limited production could take a hit.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.