(Bloomberg) — West Texas Intermediate crude rose above $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, 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 $85.04 a barrel at 8:23 a.m New York time. Brent also extended gains.
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Source: Investing.com
