Texas crude closes 2% higher to $87.35

The price of Texas Intermediate Oil (WTI) closed Wednesday up 2% to $87.35, pending geopolitical and Federal Reserve issues.

According to end-of-trade data on the New York Mercantile Exchange (Nymex), WTI futures contracts for March delivery added $1.75 from the previous session's close.

Benchmark US oil eased its early-day rise, which has been shaped by geopolitical issues and the Federal Reserve's meeting on monetary policy.

US President Joe Biden said he is considering imposing sanctions on Russian President Vladimir Putin if he decides to invade Ukraine, although his representative to NATO stressed that the Alliance is committed to dialogue.

According to analyst Craig Erlam, from the Oanda firm, the dynamics between energy supply and demand continue to favor a rise in prices, and the risk of the conflict in Ukraine adds points to that trend.

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"It is unlikely that oil and gas will be used as a weapon but if that were to happen, it could lead to a serious increase in prices given the current tightening of the markets," he added.

The market is also watching geopolitical issues in the Middle East, as Yemen's Houthi rebels launched a missile attack against infrastructure in the United Arab Emirates on Monday.

Domestic in the US, the Federal Reserve left interest rates unchanged but added that it will raise them soon as part of the withdrawal of stimulus deployed to support the economy during the pandemic.

The Energy Information Administration today disclosed an increase of 2.4 million barrels of crude oil in national inventories in the last week, well above what was estimated by analysts.

On the other hand, natural gas contracts for February delivery added more than 22 cents to $4.28 per thousand cubic feet, and gasoline contracts due the same month rose more than 6 cents, up to $2.52 a gallon.