By Hou ruining

US crude price hit US$110 (694 yuan) a barrel on March 2, the highest since June 2014. ICE Brent Crude (May’22) opened at US$107 and rose to US$111 in the afternoon. Crude Oil WTI May '22 reached US$105 a barrel.

The war in Ukraine and sanctions drew concerns that the supply chain could be disrupted. Crude analysts OilX said supply from Russia may be cut soon, potentially sending crude to US$150. 

The International Energy Agency announced on Tuesday that 31 of its member countries would release 60 million barrels from emergency reserves to send a message to markets that there will be no fluctuation in supplies because of the conflict.

“When global energy consumption accounts for more than 6 percent of GDP, the crude oil price goes beyond US$120 a barrel,” Analyst YAN Jiantao said. “That will almost certainly be the case this year.”

The sanctions are taking effect on both sides. BP, Equinor, Shell and ExxonMobil have stopped dealing with Russia. BP said the action would cost the company US$25 billion.