Oil Prices Hit 7-year High after Attack on UAE Oil Facility

Oil prices rose on Tuesday to their highest levels since 2014 as a possible supply disruption after attacks in the Gulf region raised expectations for already tight supplies.

Brent crude futures rose 0.9% to $87.25 a barrel. US West Texas Intermediate (WTI) crude futures rose 1.5%to $85.07 a barrel.

Both crude touched 7-year high; with Brent at $88.13 and WTI at $85.74.

Supply fears escalated this week after Yemen's Houthi movement attacked the United Arab Emirates, leading to an escalation of hostilities between the Iran-aligned group and the Saudi-led coalition.

The Houthi group warned, after drone and missile strikes, explosions in fuel trucks and the killing of three people, that it may target more facilities, adding to geopolitical price premiums as tensions grow between Ukraine and Russia, one of the world's biggest oil producing countries.

Also, some oil producers are struggling to pump the capacities allowed under an agreement with OPEC+ to add 400,000 barrels per day.

Meanwhile, Goldman Sachs analysts said they expect oil stocks in OECD countries to fall to their lowest levels since 2000, expecting Brent crude to reach $100 by late 2022.