LONDON: Oil prices flirted with one-year highs on Thursday before falling back in a bout of profit-taking, which tempted investors back into stocks after several days of losses over inflation fears.

Worries that high energy prices will keep interest rates high in Europe and the US pushed stocks down sharply in September, dousing hopes that central bankers could start easing monetary policy.Instead, Brent crude hit $97.69 a barrel on spot markets early Thursday, the highest price since November last year, before losing 0.5 per cent to close at $93.89.

New York’s main contract, West Texas Intermediate, hit $95.03, a peak since August 2022, but settled at $93.02 after easing 0.7pc.

“Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer,” said Russ Mould, investment director at AJ Bell.

Published in Dawn, September 29th, 2023