There is no downward pressure on prices market analysts are warning as the impact of Russian oil and other product being blocked could see Brent Crude hit $200 a barrel.
US secretary of state Antony Blinken said that his country and European allies are now in talks to discuss a boycott on oil and other associated products from Russia.
This has now pushed the cost of natural gas to record high prices as the markets opened on Monday to 746p per therm, which will push it up to around 40p in April.
Analysts at CMC Markets told investors, “A boycott would put enormous pressure on oil and gas supply that has already felt the impact of increasing demand.
“Prices are likely to rise in the short term, with a move toward $150 a barrel not out of the question.”
“Such a move will put further pressure on global economies, pushing inflation higher, leaving central banks debating how quickly rate hikes should be implemented,” they concluded.
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