Western sanctions against Russia for its invasion of Ukraine have triggered a surge in global crude oil prices.
The United States and the European Union, which are considering banning oil imports from Russia, have driven the price of "black gold" above US$100 per barrel, its highest level in 14 years.
According to Investing.com data, the price of West Texas Intermediate (WTI) crude oil for April 2022 contracts closed up 4.39% to US$120.76 per barrel on Monday (March 7). This is its highest price since August 21, 2008.
Crude oil prices have surged 56.85% year-to-date (YTD) compared to the end of last year, when they stood at US$76.99 per barrel.
Compared to March 8, 2021, the price has also soared by 79.81% year-on-year (YOY).
The rise in oil prices could contribute to higher global inflation, particularly in the United States. In January 2022, the inflation rate in the US reached 7.5% (YOY).
It is also important to remember that Russia is the world's second-largest crude oil exporter. Western sanctions are predicted to disrupt the global supply of crude oil.