Crude oil storage tanks are seen from above on the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. Image taken March 24, 2016. REUTERS/Nick Oxford

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  • Washington warns of imminent Russian invasion of Ukraine
  • UK’s Johnson tells allies he fears for safety of Europe
  • Saudi, UAE might calm volatility by climbing output – IEA
  • U.S. drillers add most oil rigs in every week since Feb 2018

Feb 11 (Reuters) – Oil costs ended 3% greater on Friday at contemporary seven-year highs as escalating fears of an invasion of Ukraine by Russia, a high power producer, added to issues over tight international crude provides.

Russia has massed sufficient troops close to Ukraine to launch a serious invasion, Washington mentioned, because it urged all U.S. residents to depart the nation inside 48 hours. learn extra

Britain additionally suggested its nationals to depart Ukraine as Prime Minister Boris Johnson impressed the necessity for NATO allies to make it completely clear that there can be a heavy package deal of financial sanctions able to go, ought to Russia invade Ukraine. learn extra

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Brent crude futures settled $3.03, or 3.3%, greater at $94.44 a barrel, whereas U.S. West Texas Intermediate crude rose $3.22, or 3.6%, to $93.10 a barrel.

Each benchmarks touched their highest since late 2014, surpassing the highs hit on Monday, and posted their eighth consecutive week of positive aspects on rising issues about international provides as demand recovers from the coronavirus pandemic.

Buying and selling volumes spiked within the final hour of buying and selling, with volumes for international benchmark Brent climbing to their highest in additional than two months.

“The market would not need to be quick going into the weekend … if an invasion seems to be imminent and you understand that there can be retaliatory sanction that can end in a disruption in pure gasoline and oil provides,” Andrew Lipow, president of Lipow Oil Associates in Houston.

The Worldwide Vitality Company raised its 2022 demand forecast and expects international demand to broaden by 3.2 million barrels per day (bpd) this 12 months, reaching an all-time document 100.6 million bpd.

The power watchdog’s report follows the Group of the Petroleum Exporting International locations’ warning earlier this week that world oil demand may rise much more steeply this 12 months on a powerful post-pandemic financial restoration.

The IEA added that Saudi Arabia and the United Arab Emirates might assist to calm unstable oil markets in the event that they pumped extra crude, including that the OPEC+ alliance produced 900,000 bpd beneath goal in January.

The 2 OPEC producers have probably the most spare manufacturing capability and will assist to alleviate dwindling international oil inventories which have been amongst components pushing costs in direction of $100 a barrel, deepening inflation worldwide.

The Biden administration responded to excessive costs by once more stating this week that it has been speaking with massive producers about extra output, in addition to the potential of extra strategic releases from massive customers, because it did late final 12 months.

Oblique U.S.-Iran nuclear talks resumed this week after a 10-day break. A deal might see the lifting of sanctions on Iranian oil and ease provide tightness.

In america, drillers added probably the most oil rigs in every week in 4 years, with the rig depend, an indicator of future manufacturing, rising 19 to 516, its highest since April 2020, power providers agency Baker Hughes Co mentioned.

(This story corrects to delete the phrase “document” in fifth paragraph.)

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Further reporting by Ahmad Ghaddar and Ron Bousso in London; Emily Chow in Beijing; Enhancing by Marguerita Choy and David Gregorio

Our Requirements: The Thomson Reuters Belief Ideas.

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