Russia's attack on Ukraine has deepened concerns about disruptions to global energy supply as oil prices jumped on Thursday, with Brent crude raising above $105 a barrel for the first time since 2014.
Brent crude rose $8.24, or 8.5%, to $105.08 a barrel at 10:45 GMT. U.S. West Texas Intermediate (WTI) crude jumped $7.78, or 8.5%, to $99.88.
Brent and WTI hit their highest since August and July 2014 respectively.
UBS analyst Giovanni Staunovo said: "Russia is the third-largest oil producer and second-largest oil exporter. Given low inventories and dwindling spare capacity, the oil market cannot afford lar supply disruptions.
"Supply concerns may also spur oil stockpiling activity, which supports prices."
Russia is also the largest provider of natural gas to Europe, providing about 35% of its supply.
Global oil supplies remain tight as demand recovers from pandemic lows.
Underscoring the tight market, premiums on crude contracts for loading in one month over contracts for loadings in six months, a metric closely watched by traders, hit a record high at $11.55 a barrel.
"This growing uncertainty during a time when the oil market is already tight does leave it vulnerable, and so prices are likely to remain volatile and elevated," said Warren Patterson, head of ING's commodity research.
Analysts believe that Brent is likely to remain above $100 a barrel until significant alternative supplies become available from OPEC, U.S. shale, or Iran, for example.
Russia launched an all-out invasion of Ukraine by land, air and sea in the biggest attack by one state against another in Europe since World War Two.
The United States and Europe have promised the toughest sanctions on Russia in response.
"If sanctions affect payment transactions, Russian banks and possibly also the insurance that covers Russian oil and gas deliveries, supply outages cannot be excluded," said Commerzbank analyst Carsten Fritsch.
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