Oil is trading at $ 89 a barrel, a seven-year high, largely due to limited supplies and geopolitical tensions in Europe and the Middle East, raising concerns about further unrest.
US President Biden has said he will consider imposing personal sanctions on President Putin if Russia invades Ukraine.
Also Monday, the Houthi movement in the mosque launched a rocket attack on the UAE base.
“Concerns about possible unrest in the Middle East and Russia provide food for the rising oil market,” said Stephen Brennock of PVM.
Brent rose 61 cents or 0.7% to $ 88.81 a barrel, while on January 20 it had reached $ 89.50 a barrel, which is the highest since October 2014.
US WTI rose 25 cents, or 0.3%, to $ 88.85.
“The downturn in the market is limited due to rising tensions between Russia and Ukraine and the threat to UAE infrastructure,” said a Nissan Securities analyst.
Underlining the close supply-demand balance, weekly data from the American Petroleum Institute showed a drop in inventories of 872,000 barrels, according to market sources.
The official details will be announced today.
Investors are also awaiting the announcement by the Federal Reserve, which is set to signal plans to raise interest rates in March as it focuses on fighting inflation.
In another key development, OPEC + is meeting on February 2 to consider a new production boost.
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