During the session, both benchmark contracts hit their highest level since October 2014 with Brent crude at $88.13 and WTI at $85.74.
Supply concerns increased this week after Yemen’s Houthis attacked the United Arab Emirates, intensifying hostilities between the Iran-aligned group and a Saudi-led coalition.
The Emirati oil company ADNOC said it activated business continuity plans to ensure the uninterrupted supply of products to its local and international customers following an incident at its Mussafah fuel depot.
The growing tension between OPEC+ member Russia and Ukraine have also contributed to increasing the geopolitical price premium.
“The consensus is that the situation will not improve in the foreseeable future and oil demand growth coupled with supply constraints is inevitably leading to a tighter oil balance,” said Tamas Varga, an analyst at PVM.
Goldman Sachs analysts said they expect oil inventories in OECD countries to fall to their lowest level since 2000, and Brent prices to rise to $100 by the end of this year.