Oil prices Hit Highest Level since 2014 to $90.47

Oil prices rose at the settlement of trading  Wednesday, to their highest level since October 2014, in light of concerns about weak supplies, despite the rise in US stocks and the release of more strategic reserves by the US administration.

Upon settlement, the price of the futures contracts for the standard Brent crude for March delivery rose by about 1.9%, or $1.76, to reach $89.96 a barrel, after recording $90.47 during trading.

The price of US NYMEX crude for March delivery rose 2%, or $1.75, at $87.35 a barrel.

And oil prices were supported by the escalation of geopolitical tensions, amid fears that Russian gas supplies to Europe would be interrupted, after warnings by a number of European countries to impose sanctions on Moscow in the event of an invasion of Ukraine.

US Secretary of State Tony Blinken said the United States would ensure that global energy supplies were not disrupted if Russia took military action in Ukraine.

Reuters reported that the “OPEC+” group will likely adhere to the planned production increase of 400,000 barrels per day next March, when it meets next Wednesday.

Inventories of crude oil and gasoline rose in the United States during the past week, while stocks of distillates decreased.

Data from the US Energy Information Administration showed that crude oil inventories rose by 2.4 million barrels during the week ending on January 21, contrary to expectations that indicated a decline of 2.1 million barrels.

US gasoline stocks increased by 1.3 million barrels last week, while distillate stocks decreased by 2.8 million barrels in the same period.

The US administration decided to release 13.4 million barrels of strategic crude oil reserves, as part of the proposed plan aimed at reducing prices.