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 per cent to US$85.04 a barrel at 8:23 a.m New York time. Brent also extended gains.