Oil rises towards $89

Oil rose towards $89 a barrel on Wednesday, within sight of a seven-year high, supported by tight supply and geopolitical tensions in Europe and the Middle East that raise concerns about further disruption.

US 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 rose61 cents, or 0.7 per cent, to $88.81 at 0917 GMT. On January 20 it reached $89.50, the highest since October 2014.

US West Texas Intermediate (WTI) crude was up 25 cents, or 0.3 per cent, to $85.85.