WTI crude oil prices reached their highest level in 7 years

News on October 25 Earlier on Monday, WTI crude hit an important psychological mark of $85 a barrel, the highest point in U.
S
.
crude benchmark trading since October 2014.

WTI prices retreated in late afternoon, with the benchmark price pulling back to $84.
02, still up the day, up about 20%
month-on-month.

The main reason for the soaring price of crude oil is the conversion of natural gas into oil
during the natural gas crises in Europe and Asia.
According to a report given to clients by Goldman Sachs, the firm expects global crude oil demand could increase by 1 million b/d
as natural gas prices rise.

Goldman Sachs estimates that global oil demand has crossed the 99 million b/d mark and will recover to 100 million b/d
as Asian demand rebounds.

In the United States, strong demand for gasoline and distillates further supported WTI prices
.
Despite high gasoline prices, U.
S.
gasoline and distillate consumption has now returned to five-year averages
.

As the world's largest fuel consumer, U.
S.
fuel demand is a key determinant of
prices.

In addition to the natural gas crisis and U.
S.
fuel demand, another supporting factor for crude oil prices is market panic as India and Europe work to get power plants to use not only natural gas but also coal
.

Goldman Sachs said the strong performance of global oil demand could push Brent crude prices above the year-end forecast of $90 a barrel
.

At 1:00 p.
m.
ET, WTI is trading at $83.
80 and Brent is trading at $
85.
90.