Global oil prices have risen past $100 and may rise even farther.

Following Russia's invasion of Ukraine, oil prices soared beyond $100 per barrel, adding to the pressure on a global economy already beset by high inflation.

Brent crude, the worldwide standard, was trading at $105.40 per barrel at 5:30 a.m. ET on Thursday, up 8.5 percent. Brent's price last surpassed $100 per barrel in 2014. Oil prices in the United States climbed by 8% to moreover $100 a barrel.
Early Thursday, Russian soldiers launched a sweeping onslaught against military installations across Ukraine, as well as many airports. As Russian forces assaulted from three sides, the assault began hours before daybreak and quickly expanded over central and eastern Ukraine.

Russia is the world's second-largest oil producer and a major natural gas exporter. Retail prices could rise as a result of supply disruptions, making it more expensive for consumers all over the world to fuel their cars and for Europeans to heat their homes. In certain parts of Europe, gasoline prices have already reached new highs.

For nearly a year, prices have been steadily rising, fueled by surging demand following the lifting of pandemic lockdown restrictions. OPEC and several other major crude oil producers, including Russia, have gradually increased output but have struggled to fulfill their own production targets despite intense pressure from big energy consumers to pump more.

The Ukraine conflict has added a new wrinkle to the OPEC+ coalition's tumultuous politics. The Russian economy is strongly reliant on oil and gas revenues, and Moscow wants prices to remain high. Saudi Arabia, a close friend of the United States, will now be under significant pressure from developed economies to increase output.
In Europe, a tight market combined with violent conflict is a powerful combination. According to Capital Economics experts, in the worst-case scenario, if energy flows are blocked, oil prices may reach $140 per barrel.

There are only a few other supply options. Rising prices will encourage shale producers in the United States to increase production. A nuclear deal between Iran and the West, which would remove sanctions against the OPEC member, might also bring more barrels onto the market.
"An Iranian nuclear deal that lifts sanctions and increases production remains a wild card," S&P Global Platts Analytics analysts said, "but the market will gradually need additional oil."