U.S. crude hit its highest level in more than a year on Tuesday as Russia continued to fall.
When Russia invaded Ukraine last Thursday, the prices went over the $100 mark for the first time.
The US oil benchmark, West Texas Intermediate crude futures, jumped 5.7% to trade at $101.17 per barrel.
The price of international benchmark crude was $104.16 per barrel. The contract increased to $105.79 last week.
Canada is the only nation to target Russia's energy complex directly. The financial sanctions imposed by the U.S. and Western allies could allow for energy payments to continue.
Key European financiers to commodity trade houses have already begun curtailing financing for commodities trades, and Chinese banks are also pulling back, according to a note to clients.
The global oil market was already tight. Supply has remained constrained while demand has bounced back. This week, the Organization of the Petroleum Exporting Countries and its oil- producing allies will meet to discuss output for April.
The impact of Russia's invasion of Ukraine on oil supply and how IEA members can play a role in stabilising energy markets will be the subject of an extraordinary meeting of the International Energy Agency on Tuesday.
Morgan Stanley raised its near-term oil price forecasts on Tuesday, saying the events in Ukraine have introduced a risk premium in oil prices that is likely to remain in coming months.
Even small disruptions can have large price impacts, the firm said.
Morgan Stanley has raised its forecast for the second quarter to $110 from $100. The firm believes that prices will go up to $125 per barrel.
The only significant remaining balancing mechanism is demand destruction.
Americans are feeling the effects of higher oil prices. The national average for a gallon of gas was $3.619 on Tuesday, up 24 cents from a month ago, according to data fromAAA.
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