LONDON, Sept 28 Reuters Oil prices steadied on Thursday as investors weighed supply concerns against growing expectations that key Western economies will maintain high interest rates to tackle stubborn inflation.

By 1111 GMT, Brent crude futures were down 37 cents to 96.18 a barrel after rising to their highest level since last November earlier in the session. The November contract expires on Friday.

The December Brent contract was down 35 cents at 94.01 a barrel.

U.S. West Texas Intermediate crude futures WTI were 24 cents lower at 93.44 a barrel, after rising above 95 earlier in the session for the first time since August 2022.

The spike in crude prices earlier in the session reflected scarce supply and inventory declines, analysts said.

But as Brent prices approach 100 a barrel, concerns are mounting that central bankers will be forced to persist with high interest rates to curb inflation fuelled in part by the high cost of energy.

Investors know that higher oil prices are going to hurt the economy as economic activity will drop not to mention the fear of interest rates staying higher for longer, said Naeem Aslam of Zaye Capital Markets.

U.S. crude stocks fell by 2.2 million barrels last week to 416.3 million barrels, government data showed, far eclipsing the 320,000barrel drop analysts expected in a Reuters poll.

Crude stocks at the Cushing, Oklahoma, storage hub that is the delivery point for U.S. crude futures fell by 943,000 barrels in the week to less…