Crude oil futures ended higher on Wednesday amid rising geopolitical tensions. US President Joe Biden has warned Moscow of damaging sanctions, including measures personally targeting President Vladmir Putin, if Russia invades Ukraine. Meanwhile, in the Middle East, the United Arab Emirates is reportedly looking to upgrade its defensive capabilities following the missile and drone attacks on the UAE by Houthi rebels over the past two weeks. Besides, crude oil prices rose despite data showing a larger than expected increase in US crude inventories last week. The Energy Information Administration said that crude oil inventories rose by 2.4 million barrels during the week ended January 21. The Street was expecting an increase of just 150,000 barrels.
Benchmark crude oil futures for March delivery rose $1.75 or 2 percent to settle at $87.35 a barrel on the New York Mercantile Exchange. Brent crude for March delivery gained $1.22 or 1.4 percent to settle at $ 88.40 a barrel on London's Intercontinental Exchange.