WTI crude futures rose more than 2% to above $86 per barrel on Tuesday, the highest since October 2014, and extending gains for the 3rd consecutive session, boosted by geopolitical tensions in the Middle East and tight supply.


The United Arab Emirates, the third-biggest OPEC produce, pledged to hit back against Houthi militants for a deadly attack on its capital Abu Dhabi on Monday that killed three people.


Oil prices surged more than 13% since the start of the year, amid concerns over tightness in the oil market, with investors shrugging off a potential hit to fuel demand from the omicron variant.


Moreover, oil prices rallied even after China recently agreed with the US to release crude oil from its strategic stockpiles around the Lunar New Year, in a bid by major consumers to lower energy prices.


Analysts said supply tightness is unlikely to ease as some OPEC+ member countries are struggling to pump at their allowed capacities due to underinvestment and outages.

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