Oil prices rose to a four-month high on Thursday after the west’s energy watchdog forecast demand would exceed market supply, reversing its previous prediction of a surplus.

Brent crude, the international benchmark, breached $85 for the first time since early November, rising 1.3 per cent to $85.15. That brings its rise so far this year to 11 per cent. The US benchmark, West Texas Intermediate, rose 1.7 per cent to $81.04 a barrel.

The International Energy Agency said the oil market would be in a “slight deficit” this year, as it reduced its forecast for global supply growth to 800,000 barrels a day, from 1.7mn in its February report. The new estimate assumes that voluntary cuts made by Opec+ members to try and support prices will remain in place throughout 2024.