The price of crude oil jumped 5% on Wednesday on concerns of a supply crunch even after 31 countries agreed to release 60 million barrels of oil from reserves around the world.
International benchmark crude oil futures were up 4% at $110.18 a barrel. The US benchmark West Texas Intermediate futures were up 4%.
The International Energy Agency (IEA) agreed on Tuesday to release 60 million barrels of oil from their emergency reserves to send a unified and strong message to global oil markets that there will be no shortfall in supplies as a result of Russia.
Russia is the third-largest oil producer behind the US and Saudi Arabia, according to the IEA. The crisis in Ukraine could disrupt energy supply, which in turn would add to already hot global consumer inflation.
Vishnu Varathan, the head of Mizuho Bank, said that markets dismissed the notion that 60 million barrels of strategic reserves released will be consequential to the risks of Russian supply.
Varathan said that inflation risks have not gone down.
The price of crude oil is up over 40% so far this year.
Last Thursday, crude oil hit $100 a barrel for the first time in seven years, after Russian President Putin announced a military assault against Ukraine.
The Organization of the Petroleum Exporting Countries and its allies will meet later in the day to discuss April's oil output.
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