The oil price has skyrocketed in recent days due to the Russian conflict in Ukraine, with Brent Crude soaring to $131 per barrel and WTI Crude hitting $127.
The war continues to rock the market, with consumers wondering why the price of the commodity has soared, and when the price will reach its peak.
The currently oil price marks the highest price for oil in 14 years, with petrol now 155p per litre, according to the AA Motoring Group.
Oil prices are only set to climb higher after the UK and US took the difficult decision to ban Russia’s oil exports in a move which will most likely see household bills squeezed even tighter.
The UK imported 4.7 million tonnes Russia’s oil in 2021, amounting to slightly under 100,000 barrels per day (bpd).
The imports account for less than 10% of UK’s oil requirements, however the price per barrel is set to ripple out on a global scale.
The record price for oil was set at $147.50 in July 2008, however analysts such as UBS commodities expert Giovanni Staunovo noted that a drawn out war could potentially see prices exceed $150.
“There are big questions about how the world deals with both the current crisis and the longer-term shifts in supply and demand,” added AJ Bell financial analyst Danni Hewson.
“Will it stimulate new exploration for those much prized and incredibly lucrative oil and gas supplies or will it speed up the transition to cleaner, greener fuel sources.”
“Whichever way the pendulum swings there is little doubt the consumer will suffer in the short term and inflation numbers which have been bandied around in the US and UK might be looking a little optimistic in the cold light of today’s announcement.”