PARIS, France - Oil prices surged on Thursday back above $100 a barrel on renewed concerns about the war in Ukraine disrupting Russia's energy supplies.
After sinking below $94 a barrel earlier this week, U.S. crude soared 8% to $135.65 a barrel in recent trading. Brent crude spiked 9% to $107 a barrel.
The swift rebound in oil prices will be watched closely by leader sin Washington and Wall Street because high energy prices threaten to exacerbate inflation and slow down the economy.
Energy traders blamed Thursday's spike on growing pessimism about a resolution between Russia and Ukraine being reached in the near term.
'The mood has darkened a little bit', said Robert Yawger, vice president of energy futures at Mizuho Securities. 'It sounds like this is going to be a dragged - out situation'.
The recent drop in oil prices was driven in part by hopes for a potential ceasefire. The longer the war goes on, the bigger the threat to Russia's oil flows.
'Given Putin's actions in recent times, we shouldn't get our hopes up', said Matt Smith, lead oil analyst of the Americas at Kpler.
The International Energy Agency warned Wednesday that staggering 30% of Russia's oil production could be knacked offline within weeks, exposing the world economy to a potential supply crisis.
'The implications of a potential loss of Russian oil exports to global markets cannot be understated', the IAE said in its monthly report.
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