The price of oil moved over the $90 per barrel marker on Thursday as crude supplies tighten and as Saudi Arabia and Russia cut production.
Crude is now at the highest level in 10-months.
The climb has added to inflationary pressure.
On Wednesday, the consumer price index rose 3.7% annually in August, more than expected. The jump was fueled by a surge in gas prices, which accounted for more than half of the increase last month, the Labor Department said in the report. In total, energy prices climbed 5.6% in August from the previous month, including a 10.6% jump in gas prices.
The producer price index, reported Thursday, which measures inflation at the wholesale level before it reaches consumers, climbed 0.7% in August from the previous month. On an annual basis, prices are up 1.6%
Meanwhile, the Russian and Saudi output reductions will result in a market deficit through the fourth quarter, the International Energy Agency said on Wednesday before a bearish U.S. inventories report prompted a slight pullback in prices.
ExxonMobil’s Beaumont refinery expansion adds 250,000 barrels per day to the oil company’s processing capacity. (Fox News Digital/ExxonMobil / Fox News)
West Texas Intermediate is up over 13.5% the last five days and now more than 31% the last quarter, while Brent Crude, the global benchmark, is now roughly 3.8% higher the last five days and almost 24% higher the last three months.
Priyanka Sachdeva, senior market analyst at Phillip Nova, said supply fears are underpinning oil prices as producers "adamantly stick to restricted production".
The Organization of the Petroleum Exporting Countries (OPEC) recently issued updated forecasts of solid demand and also pointed to a 2023 supply deficit if production cuts are maintained.
FILE PHOTO: A 3D-printed oil pump jack is seen in front of the OPEC logo in this illustration picture. REUTERS/Dado Ruvic/File Photo (REUTERS/Dado Ruvic/File Photo / Reuters Photos)
Meanwhile, oil producers like Chevron, Hess, Exxon Mobile and Occidental Petroleum historically have benefited from higher oil prices.
FOX Business' Megan Henney and Reuters contributed to this report