US oil prices skyrocket to record highs as economy warning issued over shrinking stockpile

Stockpiles fell below 22 million barrels at Cushing, Oklahoma, the hub considered the benchmark to measure US oil prices.

Inventories are reported to have fallen in most regions with the Cushing tanks operating at only 25 per cent capacity.

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“My fear in this market is we have de-stocked so much inventory,” Amrita Sen, co-founder and head of research at consultant Energy Aspects, told Bloomberg.

“Right now, what’s going on in the US — Cushing is dry.”

Brent International also rose as high as $96.55 per barrel amid speculation that the price of oil could surge over $100 per barrel in the coming months.

Continental Resources, a shale driller, said that prices could even surge to between $120 (£98.73) to $150 (£123.42) per barrel.

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“That’s going to send a shock through the system,” said Continental CEO Doug Lawler.

If no new drilling is encouraged, “you’re going to see more pressure on price,” he said.

Higher crude prices affect prices at the pump and could be a hammer blow to the Federal Reserve’s efforts to curb inflation as higher oil and gas prices add to inflation.

The Fed is reported to be aiming for a “soft landing” in its approach to tackling inflation so that it doesn’t knock the economy into recession.

​Interest rates have been raised 11 times over the past year in a bid to drive down prices but higher rates could mean the economy will be affected.

“In addition to just the consumers feeling the pain, and public confidence and approval goes down for the president, etc., when these prices go up — in addition to that you have an oil price spike, which if you read the broader economic discussion is sort of like this unwelcome surprise that could derail the soft landing,” president of Rapidan Energy Group Bob McNally told the Washington Examiner.

The latest oil price rise comes after GB News sat down with multi-billionaire and US oil mogul Harold Hamm who hinted that America’s “energy renaissance” could be used to benefit Britain.

An energy deal between the US and UK could be on the cards, according to the founder of a multi-billion dollar US oil company.

Harold Hamm, Chairman And CEO of Continental Resources, claims the "energy renaissance" which has been created in America could benefit Britain.

The oil and gas pioneer explained that the US had enough energy to help supply the UK and that a deal should be done.

Hamm said: “It certainly could and it should happen. There should be an energy deal between those countries.

“You know, the good thing about it is we've managed to supply a lot of our allies.”