Cutting Wall Tile with Oscillating tool?
That should cut through the tile fairly well (assuming ceramic and not porcelain), but it may not leave a clean edge against the cabinet. In particular, you'll have trouble getting through the surface glazing.

I'd set the cabinet in place, trace it on the tile with a permanent marker, pop the tile off the wall, and take it to a big box or tile shop and ask them to cut it with their wet saw.