U.S. crude oil prices top $90 a barrel for the first time since November 2022

Oil prices jumped on Thursday, with U.S. crude topping $90 a barrel, as expectations of a tighter provide grew.

West Texas Intermediate crude (WTI) gained 1.6% to succeed in a excessive of $90.04 per barrel, touching its highest degree since November 2022. Brent crude was up 1.5%, at $93.23, reaching a 10-month excessive. WTI crude final traded at $89.91 a barrel.

Saudi Arabia and Russia have prolonged their oil output cuts to the finish of 2023, and the transfer might end in a substantial market deficit for the remainder of 2023, the International Energy Agency mentioned on Wednesday.

“From September onwards, the lack of OPEC+ manufacturing… will drive a vital provide shortfall via the fourth quarter,” the company mentioned in its month-to-month report.

Rising crude prices might imply larger gasoline prices at a time when the financial system is making an attempt to get better and resolve the inflation drawback. Inflation, measured by the Consumer Price Index, posted its biggest monthly increase this year in August as power prices fed a lot of achieve, rising 5.6%, a rise that included a 10.6% surge in gasoline.

WTI crude is up nearly 3% this week, on tempo for the third straight weekly achieve. The prices are up about 13% this 12 months.

Earlier this week, the OPEC issued up to date forecasts of strong demand and in addition pointed to a 2023 provide deficit if manufacturing cuts stay.