US oil prices topped $90 a barrel for the first time this year on expectations of tighter supply, raising fresh concerns that they will drive the US inflation rate higher.
The price of West Texas Intermediate, the US benchmark, climbed as much as 2.2 per cent to $90.50 a barrel in lunchtime trading on Thursday as the market reacted to Saudi Arabia and Russia’s decision last week to extend production and export cuts to the end of the year.
The price of Brent crude was up almost 1.9 per cent at $93.69, its highest level since November, with many analysts forecasting prices could hit $100 a barrel soon.
Rising energy costs pushed US inflation above forecasts in August, threatening to complicate the Federal Reserve’s battle to keep prices in check.
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