(Investing.com) – Oil was up on Friday morning in Asia, with Russia's invasion of Ukraine driving global supply concerns.
Investors are also bracing for the potential impact of trade sanctions on Russia, the third-largest crude exporter globally.
Brent oil futures rose 2.38% to $97.69 by 11:58 PM ET (4:58 AM GMT) after hitting a high of $101.87. WTI futures rose 2.24% to $94.89.
The Russian invasion of Ukraine on Thursday saw the black liquid soar past the $100 mark for the first time since 2014, with Brent Futures climbing as high as $105.
Ukrainians are fleeing in the tens of thousands in the aftermath of the biggest attack on a European state since World War Two.
"Asian buyers, clearly nervous into the weekend, have piled into oil today sending prices higher once again, helped along by reports of explosions in Kyiv," OANDA senior market analyst Jeffrey Halley told Reuters.
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"The Ukraine situation will serve to keep prices elevated, as will the threat of disruptions, real or imagined, coming in an environment of already strong demand and constrained supply globally... I believe Brent futures will now trade in a $90-110 range over the next few weeks."
The U.S. responded to the invasion by slapping more sanctions on Russia. Although a State Department official told Reuters that the sanctions "are not targeting and will not target oil and gas flows", oil prices remain high.
"Oil markets are particularly vulnerable to supply shocks given global oil stockpiles are at seven-year lows," Commonwealth Bank analyst Vivek Dhar said in a note.
"The Organization of the Petroleum Exporting Countries (OPEC) and allies (OPEC+)’s spare oil capacity has come under question due to disappointing OPEC+ supply growth," the note added.
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The cartel, which includes Russia, has been struggling to boost production and output by OPEC members in January 2022 was below a rise planned under a deal with allies, according to a Reuters survey.
Although the U.S, has indicated it may look to release strategic oil stockpiles to address soaring prices, "history suggests that any drawdown on strategic oil stockpiles will likely only provide temporary relief from high oil prices," according to Dhar’s note.
Meanwhile, Thursday’s U.S. crude oil supply data from the U.S. Energy Information Administration showed a build of 4.515 million barrels in the week to Feb. 18.
Forecasts prepared by Investing.com predicted a 442,000-barrel build, while a 1.121-million-barrel build was recorded during the previous week.
Crude oil supply data from the American Petroleum Institute released the day before, showed a build of 5.983 million barrels.