Oil prices at a record high since 2014
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The price of a barrel of West Texas Intermediate crude in futures contracts reached $85.25 after it reached $85.74 in Asian trading, the highest level recorded since October 2014.
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Oil prices are at their highest level since 2014
On Tuesday, benchmark oil prices rose to their highest level since 2014, owing to the possibility of supply disruption following attacks in the Middle East Gulf, which contributed to an already tight supply outlook.
At 14:46 GMT, Brent crude futures were up $0.74, or 0.9%, to $87.22 per barrel. WTI crude futures in the United States rose $1.07, or 1.3%, to $84.89. Due to a federal holiday in the United States, trading was light on Monday.
Concerns about supply have grown this week when Yemen's Armed Forces attacked the UAE, in response to an ongoing aggression on Yemen.
Geopolitical tension
After launching drone and missile strikes that set off explosions in fuel trucks and killed three, Ansar Allah Movement warned it could target more facilities, while the UAE said it reserved the right to "respond to these terrorist attacks."
After an incident at its Mussafah fuel depot, UAE oil giant ADNOC said it has triggered business continuity procedures to ensure an uninterrupted supply of products to its local and international clients.
Rising tensions between Ukraine and OPEC+ member Russia are also adding to geopolitical price surcharges.
OPEC struggles
Furthermore, several members of the Organization of Petroleum Exporting Countries (OPEC) are straining to meet their monthly quotas under an agreement with Russia and allies to add 400,000 barrels per day.
OPEC will release its January oil market report at 12:30 GMT.
"The consensus is that the situation will not improve in the foreseeable future and oil demand growth together with supply constraints is inevitably leading to a tighter oil balance," said PVM analyst Tamas Varga.
Oil stocks in OECD countries are expected to fall to their lowest levels since 2000 by the summer, according to Goldman Sachs analysts, with Brent oil prices increasing to $100 later this year.
