NEW YORK: Oil touched $90 a barrel for the first time in seven years on Wednesday, supported by tight supply and growing tensions between Russia and Ukraine and middle East tensions that raised concerns about further disruption in an already-tight market.
Brent crude gained $1.76 to settle at $89.96 a barrel, after surpassing $90 for the first time since October 2014. U.S. West Texas Intermediate (WTI) crude closed up $1.75 to $87.35 a barrel.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, meets on Feb. 2 to consider another output increase. OPEC is having trouble meeting monthly production targets as it restores supply to markets after drastic cuts in 2020, and the United States is more than a million barrels short of its record level of daily output.
On Tuesday, U.S. President Joe Biden said he would consider personal sanctions on President Vladimir Putin if Russia invades Ukraine. Separately, Yemen’s Houthi movement launched a missile attack on a United Arab Emirates base on Monday.
The crisis threatens to add even more inflationary pressures at a time when price growth is already at its highest level in decades.
