TEXAS: West Texas Intermediate crude rose above US$85 a barrel for the first time since 2014, another landmark in a global energy crunch that has seen prices soar.
Oil has jumped in recent weeks as natural gas prices hit records. The surge in gas could add at least 1 million barrels a day to oil demand, according to Goldman Sachs Group Inc, which sees global consumption on the cusp of returning to pre-pandemic levels.
That comes as the Organization of Petroleum Exporting Countries and its allies are adding back output only gradually into a market where stockpiles are steadily declining.
The advance in oil prices is the latest leg higher in a surge in broader energy costs that is adding inflationary pressure to the global economy as policymakers begin to taper stimulus.
WTI futures rose as much as 1.5% to US$85.04 a barrel at 8.23am New York time. Brent also extended gains.