The oil price closed Wednesday at its highest level in seven years, partly because of the presence concerns about a Russian attack on Ukraine.

If Russia invades Ukraine, oil prices will skyrocket. If the conflict between the two countries escalates, then it will most likely lead to oil-related sanctions for Russia from the West. Given that Russia is one of the largest oil producers in the world, this could further tighten the global supply of oil. Furthermore, oil stocks last week appeared to have risen for the second week in a row. In the week ending January 21, crude oil stocks stood at 2.4 million barrels to 416.2 million units. Petrol stocks increased by 1.3 million barrels to 247.9 million barrels. The stock of fuel oil and diesel decreased by 2.8 million barrels to 125.2 million units.

Investors also tell us to keep an eye on developments in the Middle East following the recent drone attacks by the Houthi rebels in Yemen on oil facilities in the United Arab Emirates. Strong demand and high security with regard to supply growth, including geopolitical tensions, provide support.

The price of oil is currently determined by the expectation that the supply problems in the oil market will disappear due to the recorded tensions between Russia and the West and attacks on the infrastructure in the Middle East. Meanwhile, oil demand remains high and global stocks remain low, allowing investors to respond directly to oil reduction issues.

A February future for a barrel of West Texas Intermediate crude became 2 percent more expensive and closed at $ 87.35 on the New York Mercantile Exchange.