US crude oil prices exceed $90 a barrel for the first time since November 2022 | ET REALITY

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The Searuby crude oil tanker arrives at Teesport on September 2, 2023 in Redcar, United Kingdom.

Ian Forsyth | Getty Images News | fake images

Oil prices rose on Thursday, with U.S. crude surpassing $90 a barrel, as expectations grew for tighter supply.

West Texas Intermediate (WTI) crude oil gained 1.6% to hit a high of $90.04 per barrel, hitting its highest level since November 2022. Brent crude oil rose 1.7% to $93.47 dollars, reaching a maximum of 10 months. WTI crude oil last traded at $90.02 a barrel.

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WTI crude oil

Saudi Arabia and Russia have extended their oil production cuts until the end of 2023, and the move could result in a substantial market deficit for the rest of 2023, the International Energy Agency said on Wednesday.

“Starting in September, the loss of OPEC+ production… will lead to a significant supply shortfall during the fourth quarter,” the agency said in its monthly report.

Rising crude oil prices could mean higher gasoline prices at a time when the economy is trying to recover and solve the problem of inflation. Inflation, as measured by the Consumer Price Index, recorded its biggest monthly increase this year in August, as energy prices fueled much of the increase, rising 5.6%, a rise that included a rise in 10.6% in gasoline.

WTI crude oil is up almost 3% this week, on track to post its third consecutive weekly gain. Prices have risen about 13% this year.

Earlier this week, OPEC issued updated forecasts for strong demand and also flagged a supply shortfall in 2023 if production cuts remain in place.

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