Oil prices soared to a seven-year high on Wednesday as worries of supply disruption grew following the sanctions imposed on Russian banks in the midst of the escalating Ukraine crisis, while traders hurried to find alternative oil supplies in an already constrained market.

Also Read| US and allies to release 60 million oil barrels to address price spike

Brent crude futures rose $5.30, or 5%, to $110.23 a barrel at 04:19 GMT, the highest level since July 2014. West Texas Intermediate (WTI) crude futures in the United States were up $5.02, or 4.8%, to $108.41, after earlier reaching a record not seen since September 2013. Russian oil exports account for around 8% of world supplies.

Also Read| OPEC+ to meet on March 2 amid concerns over oil supply disruptions

Exxon Mobil announced on Tuesday that it will withdraw from Russia’s oil and gas businesses as a result of Moscow’s invasion of Ukraine. The company will no longer manage big industrial facilities on Sakhalin Island in Russia’s Far East as a result of the decision, reported Reuters.

Also Read| Explained: Why Russia-Ukraine crisis is hurting Indian markets

At the same time, while Western governments have not put direct sanctions on energy exports, US dealers in New York and the Gulf are avoiding Russian crude. Bharat Petroleum Corp, India’s state-owned refiner, is seeking more oil from Middle Eastern producers for April, concerned that Western sanctions against Russia may disrupt the supply of Urals crude.

Also Read| Crude oil touches $100, Gold rises over 2% as Russian troops enter Ukraine

According to trade sources of Reuters, top oil exporter Saudi Arabia may substantially raise crude prices for Asia in April, with differentials for most grades reaching all-time highs as global supplies tighten due to financing and transportation challenges caused by the sanctions on Russia.

Also Read| Gold, silver and other metal prices on March 2, 2022

A coordinated release of 60 million barrels of oil agreed upon by International Energy Agency member countries on Tuesday dampened market gains, but experts warned it would only give temporary relief on the supply front.

Also Read| Stock market midday report: Sensex down 1,108 points, Nifty around 16,500

Against this backdrop, the Organization of the Petroleum Exporting Countries, Russia, and allies, collectively known as OPEC+, are scheduled to meet on Wednesday, when they are anticipated to adhere to plans to add 400,000 barrels per day of supply per month.