Oil prices rose again Friday, with the price of US crude hitting a two-year high. The gains come as the full effects of the Keystone oil pipeline closure, between Canada and the US are realised.
Some 590 million barrels per day usually flow through the Keystone pipeline. The partial closure following an oil spill, will mean US oil stocks can’t increase as quickly as usual.
By a little before 1400 BST, the price of US WTI crude oil was 1.26% higher at $58.76 per barrel. Brent crude oil, meanwhile, was changing hands at $63.39 per barrel, a gain of 0.24%.
Mixed signals from Russia
While the Keystone pipeline closure is having a significant impact on the price of oil, other developments also feature in investor action.
The current output cap that’s in place among OPEC and non-OPEC producers has played a key part in driving the price of oil higher. And, while major producer Saudi Arabia has been positive on extending the cap beyond its current March 2018 end-date, the mood in Russia is mixed.
News this week includes snippets that Russia has been discussing a potential six-month extension to the agreement.
However, the country is heavily reliant on oil revenues. And, comments from Russia's Economy Minister Maxim Oreshkin suggesting the Russian economy has been hurt by the cap, mean keeping the cap in place for longer might not be something they’re 100% happy with agreeing.
Russia willing to discuss cap extension
Regardless of what the eventual outcome will be of the next OPEC meeting to be held in Vienna on November 30, Russia has ceded its at least willing to discuss the cap.
Speaking at the Gas Exporting Countries forum in Bolivia, Russian Economy Minister Alexander, stated that Russia would be willing to discuss an extension of the cap. No further details were mentioned.
"We are ready to discuss this issue, and I think we will be able to discuss it at the meeting in Vienna," Novak was reported as saying.