NEW YORK (AFP) – Oil prices flirted with one-year highs on Thursday before falling in a bout of profit-taking, which tempted investors back into stocks after several days of losses over inflation fears.
Worries that elevated energy prices will keep interest rates high in Europe and the United States (US) pushed stocks down sharply in September, dousing hopes that central bankers could start easing monetary policy.
Instead, Brent crude hit USD97.69 a barrel on spot markets early on Thursday, the highest price since November last year, before falling back.
New York’s main contract, West Texas Intermediate, hit USD95.03, a peak since August 2022.
Both the WTI and Brent closed lower on Thursday.
“Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer,” said investment director at AJ Bell Russ Mould.
Crude has been supported in recent sessions by supply concerns after Saudi Arabia and Russia extended output cuts until the end of the year, alongside a pickup in demand in key consumer nations including the US and China.
News that crude stockpiles at a key US storage facility in Oklahoma had fallen to the lowest levels since July last year further boosted prices.