The market continued to react to supply disruptions stemming from Russia's invasion of Ukraine and the possibility of a ban on Russian oil and natural gas.
The West Texas Intermediate crude futures traded 8% higher to above $125 a barrel. The price peaked at $130 a barrel.
The international benchmark,Brent crude, traded 9% higher to $128.60, the highest price seen since 2008.
John Kilduff of Again Capital said that oil is rising on the prospect of a full embargo of Russian oil and products. The prices in some states will go up quickly.
The US and its allies are considering banning Russian oil and natural gas imports, the Secretary of State said in an interview.
We are talking to our European partners and allies to look in a coordinated way at the possibility of banning the import of Russian oil while making sure that there is still an appropriate supply of oil on world markets.
Western sanctions against Russia have allowed the country's energy trade to continue, but most buyers are avoiding Russian products already. Sixty-six percent of Russian oil is hard to find buyers for.
The average price for a gallon of gas in the US hit $4 on Sunday due to the conflict. The underlying cost of oil is more than 50% of the cost of gas that consumers put in their cars.
The reporting was done by Pippa Stevens,Samantha Subin and Patti Domm.
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