CHART OF THE DAY: US crude oil tops $90 a barrel for the first time in 10 months

• US crude oil prices jumped above the $90 a barrel level for the first time in 10 months.
• Crude oil prices are up 12% year-to-date and are up 40% from their March low of $64 a barrel.
• Rising oil prices could drive upside pressure in inflation and force the Fed to stay tight with its monetary policy.

US crude oil prices jumped nearly 2% on Thursday to clear the $90 a barrel level, representing the first jump above that level since November 2022.

The surge comes as the US economy remains resilient, helping drive demand for oil, and as Saudi Arabia and Russia commit to oil production cuts through the end of the year.

US WTI crude oil price are up 12% year-to-date, and are up 40% from their March low of about $64 a barrel. The surge in crude prices comes as the US strategic petroleum reserve sits at 40-year lows, as the Biden administration used the SPR fund to help lower oil prices in a bid to tame inflation.

The steady grind higher for oil prices should put upside pressure on inflation, and that could force the Federal Reserve to stay tight with its monetary policy, meaning there could be further interest rate hikes, or at a bare minimum, interest rates could stay higher for longer than most expect.