The prospect of oil hitting $100 a barrel moved ever closer on Friday as crude prices surged to a fresh record amid renewed geopolitical tension over Iran’s nuclear programme and low inventories ahead of the winter.

West Texas Intermediate crude jumped to $93.20 a barrel although it later pared gains and traded 85 cents higher to $91.28 a barrel. Oil prices have now risen by about 50 per cent since the start of the year.