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The US oil price benchmark climbed further above the $58 a barrel after crossing that threshold for the first time in more than two years on Thursday.

West Texas Intermediate rose 0.6 per cent to $58.37 a barrel in early Asia trading, its highest point since mid-2015 and marking a gain of 6.5 per cent from an intraday low of $54.81 on November 14.

The rise followed the shutdown of from TransCanada’s Keystone pipeline, following a spill last week.

ANZ analysts noted that in addition to the pipeline remaining at just 15 per cent of capacity, investors are also “cautiously optimistic that OPEC will agree to extend the current production cuts beyond March 2018”.

However, while a modest rally in crude oil prices could extend into 2018, rising US shale production and spare OPEC capacity will prevent a sharp increase in prices, Scotiabank analysts said.

Brent crude, the international benchmark, was down 0.3 per cent at $63.36 a barrel in Asia on Friday.

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