US crude oil prices surge to highest level in a year as supply shortfall expected

At time of writing, Brent crude reached a 10-month high rising to $93.89 (up 1.9 per cent) while West Texas Intermediate crude (WTI) rose to £90.37 per barrel (also up 1.9 per cent).

These prices are the highest settled since 7 November 2022.

According to the International Energy Agency, a shortfall in supply is expected in the fourth quarter of the year.

“From September onwards, the loss of OPEC+ production... will drive a significant supply shortfall through the fourth quarter,” the agency said in its monthly report.

The agency added that Saudi Arabia and Russia have extended their oil output cuts which could lead to a substantial market deficit for the rest of 2023.

Rises in crude oil prices will mean higher prices at the pump at a time when inflation could run rampant.

Biden said in a statement: “I'm going to get those gas prices down again, I promise you."

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“I think the inflation situation is also looking bleak,” Donald Trump’s former economic adviser Steve Moore told GB News earlier this week.

“Globally we're seeing oil prices now at $90 (£72) a barrel. That's a huge increase over the last month or two from when it was like $65 (£52) a barrel.

“So when your energy prices rise like that, the price of everything rises because energy is the master resource, everything that we produce has an energy component to it.

Moore added: “Inflation's just a killer. It's a regressive tax on American families.

“The lowest income people suffer the most when you have inflation and the middle income people and rich people don't really suffer at all from inflation.

“We've seen a big decline in real incomes for middle-class Americans under Biden.

“I think that's going to be his Achilles heel when he runs for reelection.

“I think that these numbers on inflation are very troubling.”

EXCLUSIVE: WATCH STEVE MOORE DISCUSS US INFLATION

Oil price rises also come after Joe Biden moved to block a number of oil drilling operations in Alaska that had previously been approved by Trump.

The White House cancelled all remaining oil and gas leases in the Arctic National Wildlife Refuge.

Interior Secretary Deb Haaland proposed new legislation that would prevent new oil or gas leasing across more than 40 per cent of the National Petroleum Reserve.

The proposed legislation would prevent drilling on a total area extending some 10.6 million acres out of the 23 million acre managed area.