US crude oil rose to its 2 year highs on Friday, as the shutdown of a major crude oil pipeline from Canada to US tightened the North American markets. The pipeline in question, Keystone XL, stretched across the US from Canada transporting more than 590,000 barrels of oil per day. The pipeline that was shut down following a spill last week has driven up US crude prices as stockpiles at the storage hub in Oklahoma declined.
Analysts have warned that the rise in oil prices has a lot to do with fear trade right now. The fear fueled by the rising tensions in the Middle East has upped the prices of oil in the international markets. Analysts say that, contrary to popular opinion the price surge may have nothing to do with OPEC chatter or inventory draw downs.
U.S. West Texas Intermediate (WTI) crude futures were at $58.44 a barrel at 0550 GMT, up 42 cents, or 0.7 percent from their last settlement. Price rose to as much as $58.58 a barrel early on Friday, the highest since July 1, 2015.
Brent crude futures were at $63.42, down 13 cents.
More on the meeting slated to be held in Vienna, OPEC and non-OPEC partners in the production cut deal are scheduled to meet in Austria on November 30th to discuss the extension of their pact.
The constant OPEC chatter and the return of some geo-political risk premium in oil prices have pushed oil prices to their highest in 2 years over the past few weeks.