Roslan Khasawneh, Sonali Paul

SINGAPORE (Reuters – Oil prices rose again for the fourth day, to a seven year high. An outage at a Turkish-Iraqi pipeline increased worries about a tight supply forecast amid worrying geopolitical issues in Russia and UAE.

The futures price rose 1.2% or $1.04 to $88.55/barrel at 0351 GMT. That’s an increase of 1.2% from the session before. As high as $89.05 was the benchmark contract, which is its highest level since October 13, 2014.

U.S. West Texas Intermediate oil futures increased $1.15 (or 1.4%) to $86.58/barrel, adding 1.9% to Tuesday’s gain. WTI earlier rose to $87.08, their highest point since Oct. 9. 2014.

Botas, Turkey’s national pipeline operator, stated Tuesday that oil flow restrictions were implemented on its Kirkuk-Ceyhan pipe after an explosion. It is unknown what caused the explosion.

This pipeline transports crude oil from Iraq to Ceyhan, Turkey for export.

Analysts are predicting tight oil supplies in 2022. This is due in part to demand being stronger than anticipated against Omicron coronavirus, which can be contagious. Some analysts even call for $100 oil.

The supply worries are heightened by geopolitical concerns in Russia, which is the second largest oil producer on the planet, as well as the UAE (OPEC’s third largest producer).

On Tuesday night, the UAE demanded a meeting with United Nations Security Council members to condemn the attack by Yemen’s Houthi group on Abu Dhabi Monday. They have threatened more attacks.

Russian troops remain at Ukraine’s border. The White House has called the situation very dangerous, and warned that Russia could invade any moment.

These tensions could cause supply disruptions in a moment when OPEC+ (Russia, OPEC+) and their allies are having trouble meeting the agreed goal of adding 400,000 barrels of oil per month.

OANDA analyst Edward Moya wrote in a note that OPEC+ “is falling short of meeting their production quotas” and suggested that Brent crude could not need much push to rise to $100 a barrel if geopolitical tensions keep rising.

Vivek Dhar, a Commonwealth Bank commodities analyst, stated in a note that jet fuel consumption has been rising in tandem with international flight growth. Road traffic however is significantly higher than last year.

Dhar stated that “OPEC+ supply limitations and an ongoing rise in global oil demand will likely maintain oil prices well supported over the coming months.”

Reuters was told by OPEC officials that oil could rally further as demand recovers. Prices may break $100 per barrel as a result of limited supply in OPEC+.