The West Texas Intermediate for April delivery added 71 cents to settle at 92.81 U.S. dollars a barrel on the New York Mercantile Exchange, after hitting a session high of 100.54 dollars. Brent crude for April delivery increased 2.24 dollars to close at 99.08 dollars a barrel on the London ICE Futures Exchange, after touching 105.77 dollars earlier in the session.

Both crude benchmarks hit their highest intraday level since 2014.

The oil rally came as the tensions between Russia and Ukraine have escalated into a military conflict overnight.

Russian President Vladimir Putin authorized on Thursday "a special military operation" in Donbass, and Ukraine confirmed that military targets across the country were under attack.

Market participants feared that the escalating Russia-Ukraine tensions would disrupt energy supplies, experts noted.

Traders also parsed newly-released weekly U.S. fuel inventory data.

U.S. crude oil stockpiles increased by 4.5 million barrels during the week ending Feb. 18, the Energy Information Administration (EIA) reported on Thursday. Analysts surveyed by S&P Global Platts had forecast the U.S. crude inventories to show a fall of 0.3 million barrels.

According to the EIA, total motor gasoline inventories and distillate fuel inventories both decreased by 0.6 million barrels last week.

Read: Oil Price Falls after Saudi Aramco Asked to Raise Output Capacity

Xinhua