Oil closes 1% higher, Brent exceeds $83

Oil drilling rigs

Oil closed higher today, Feb. 21, amid geopolitical tensions in the Middle East and their potential repercussions on supplies passing through the Red Sea.

Brent crude futures for April delivery rose 0.85%, or 69 cents, to settle at $83.03 per barrel.

WTI crude for April delivery (the most active) gained 1.15%, or 87 cents, to $77.91 per barrel.

Houthi attacks on commercial ships in the Red Sea and the Bab al-Mandab Strait have renewed concerns about shipping through the waterway, as at least four ships were damaged since Friday, Reuters reported.

Goldman Sachs analysts expect that oil prices would witness an increase of 3%, due to potential interest rate cuts by the Federal Reserve.

The American Petroleum Institute's report on oil inventories is expected to be issued later today, and the US Energy Information Administration is scheduled to issue official data on inventories on Feb. 22, amid expectations that crude inventories will rise by 4 million barrels.