Oil prices jumped on Thursday to a new ten-month high, with U.S. crude rising above $90 a barrel for the first time this year. West Texas Intermediate crude rose by more than 1.9 percent on Thursday to reach a high of $90.29 a barrel, the highest level since November of last year.
Brent crude, the international benchmark most closely related to gasoline prices in the U.S., rose by nearly two percent to $93.68.
The rising price of oil comes at a particularly challenging time for American consumers. U.S. gasoline prices surged 20 percent last month, according to the producer price index data released Thursday. This accounted for 60 percent of the rise in the index for final demand goods, the Bureau of Labor Statistics said.
On Thursday, gasoline prices were once again on the rise across the nation. The national average gas price rose to $3.853 a gallon, up from $3.484 a day earlier. This is more than 50 cents higher than a month ago.
Saudi Arabia and Russia said last week that they would extend their cuts in oil supplies through the rest of 2023. This has pushed up oil prices, as intended. The U.S. is also producing less oil than it could be. The total oil rig count in the U.S. is down to 513 from 591 a year ago.