Oil hits highest since 2014 on Russia-Ukraine tension

Oil hits highest since 2014 on Russia-Ukraine tension

LONDON- Oil rose to a seven-year high close to $90 a barrel on Wednesday, supported by tight supply and geopolitical tensions in Europe and the Middle East that raise concerns about further disruption.

U.S. President Joe Biden said on Tuesday he would consider personal sanctions on President Vladimir Putin if Russia invades Ukraine. On Monday, Yemen's Houthi movement launched a missile attack on a United Arab Emirates base.

"Anxiety over potential supply disruptions in the Middle East and Russia is providing bullish fodder for the oil market," said Stephen Brennock of oil broker PVM.

Brent crude LCOc1 rose $1.37, or 1.6%, to $89.57 at 1319 GMT after reaching $89.60, the highest since October 2014. U.S. West Texas Intermediate (WTI) crudewas up $1.13, or 1.3%, to $86.73.

"The market downside is limited due to heightened tensions between Russia and Ukraine and the threat to infrastructure in the UAE," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

Underlining a tight supply and demand balance, the weekly U.S. inventory report from the American Petroleum Institute on Tuesday showed crude stocks fell by 872,000 barrels, market sources said.

The official Energy Information Administration (EIA) supply report is due at 1530 GMT.

Investors across the markets are also awaiting the