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FxWirePro: WTI reaches highest level in 28 months; likely to top around $60.5 per barrel area

This week, North American oil benchmark WTI reached the highest level in at least 28 months as it breached $58 level for the first time since June 2015. WTI is currently trading at $58.7 per barrel and showing no sign of backing down. The latest surge came on the news that the damaged keystone pipeline may remain closed for several weeks. The Keystone pipeline ruptured and spilled more than 200,000 gallons of crude oil in South Dakota last week, just days before TransCanada was given a green light for the Keystone XL in the state of Nebraska. After the spill, there is a growing threat that its permit might get canceled in South Dakota.

The price of WTI has risen steadily since June when it bottomed around $42 per barrel. It is up close to 40 percent since then and the price has increased in the past six out of seven weeks as the market remains focused on the upcoming OPEC/N-OPEC meeting on November 30th, where members are expected to green signal another extension to the production cuts agreement.

Our calculations at FxWirePro suggest the price is likely to remain upbeat heading into next week’s meeting and is likely to form the top around $60.5 per barrel area.

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