Oil rises to $ 89 driven by tensions between Russia and Ukraine

Oil rose to $ 89 a barrel on Wednesday morning, near a seven-year high, backed by tight stocks and geopolitical tension in Europe and the Middle East worrying about further supply disruptions.

The President of the United States, Joe Bidensaid on Tuesday he would consider personal sanctions against the president Vladimir Putin if Russia invades Ukraine. Yemen’s Houthi movement on Monday launched a missile attack on a base in the United Arab Emirates.

“Anxiety about possible supply disruptions in the Middle East and Russia provides bullish feed for the oil market,” says Stephen Brennock of oil broker PVM.

crude oil futures Brent They rose 61 cents, or 0.7%, to $ 88.81. On January 20, it reached $ 89.50, the highest level since October 2014.

The oil West Texas Intermediate (WTI) of the United States won 25 cents, or 0.3%, to $ 85.85.

“Market decline is limited due to increased tensions between Russia and Ukraine and the threat to infrastructure in the United Arab Emirates,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

The weekly report of U.S. crude stock by the American Petroleum Institute (API) showed on Tuesday that crude stocks had fallen by 872,000 barrels, market sources said.

The official data of the Energy Information Administration (EIA) will be announced this Wednesday at 09:30

Investors in all markets are also awaiting the release of the Federal Reserve of the United States. The Fed is expected to announce plans to raise interest rates in March as part of its focus on fighting inflation.

In another key factor, Organization of Petroleum Exporting Countries and their allies, a group known as OPEC +meets on February 2 to consider another increase in production.

OPEC + gradually lifted record cuts in 2020 production, increasing its monthly target by 400,000 barrels per day, although the real increase in supply fell short as some countries struggled to increase their production.