BEIJING, (Reuters) – Oil prices rose more than $1 Thursday as new developments in the Russia-Ukraine conflict prompted concerns about support for prices.

The price per barrel rose to $97.57, or 0.75 percent, at 0130 GMT after it had soared as high as $98.08.

U.S. West Texas Intermediate crude oil futures rose 85cs or 0.9% to $92.95 per barrel after climbing to as high as $93.50.

Antony Blinken (US Secretary of State) has indicated that he is convinced Russia will invade Ukraine as soon as possible after separatists demanded Russian aid to repel “aggression”, and when explosions rocked Donetsk, an eastern city breakaway from the US.

Russia is the second largest oil producer in the world. It mainly exports crude to European refineries and provides about 35% to Europe.

Tensions have increased when hundreds of Ukraine’s computers were attacked by data-wiping programs as part of what government officials described as an intensifying wave hacks directed at Ukraine, as Russia massed its troops near its borders.

Jeffrey Halley (OANDA senior market analyst) stated that “After yesterday’s lull where Russia-Ukraine was not in the news, its unavoidable reemergence overnight caused a flight from safety once more and lifted oil over concerns of disruption in global energy supply,”

He said that the Iran nuclear agreement is one factor that might temporarily slow down prices. Rumours are circulating that there could be a new deal announced this week. But, Ukraine fears and the wider consequences will support oil prices. This is why it remains a strong buy for dips.

There have been indirect talks between Iran, the U.S., and Iran in Vienna. This could result in an agreement that would allow for lifting of Iranian sanctions and increase world supply.

However, Iran called on the West to remain “realistic” when trying to salvage 2015’s nuclear agreement. It said that its top negotiator would be returning to Tehran to consult with them, but this suggests that a breakthrough is unlikely.

According to market sources, stocks rose by 6 million barrels, while distillate stock fell. These figures were also reported late Tuesday night by American Petroleum Institute figures.

An analyst forecasts a build of crude oil to 400,000 barrels, and a decrease in fuel stockpiles ahead of the release by government data. [EIA/S]

According to API data, gasoline inventories increased by 427,000 barrels while distillates stockspiles decreased by 985,000 barrels. Sources spoke under anonymity.