Oil blasts through US$110/bbl, as few alternatives seen to Russian supply

Brent crude LCOc1 futures peaked at US$113.94 a barrel during the session, before settling at $112.93, up $7.96, or 7.6%. U.S. West Texas Intermediate (WTI) crude CLc1 futures hit a high of $112.51 a barrel, and closed $7.19, or 7%, higher at $110.60. (File pic shows oil drilling in Russia.)

NEW YORK: Oil surged relentlessly beyond US$110 a barrel on Wednesday, extending its rally since Russia invaded Ukraine seven days ago, on expectations that the market will remain short of supply for months to comefollowing sanctions on Moscow and a flood of divestment from Russian oil assets by major companies.

The market rallied into the close of trading on heavy volume, with global benchmark Brent crude ending the day at its highest close since June 2014, while U.S. crude's settlement was its highest since May 2011.