The first day of March proved to be a difficult day for the global oil market as the price of crude oil shot up on the list of concerns of impending supply chain disturbance. Over the past few days, countries across the globe piled on economic sanctions on Russia in response to its ongoing ‘special military operation’ in invading Ukraine.

Brent crude futures, which began their notable price movement on February 27, rose $7.00 or 7.1%, settling at $104.97 a barrel. This was after the benchmark hit its seven-year record of $105.79 at the start of the Russian invasion. US West Texas Intermediate or WTI crude climbed up by 8.0% or $7.69, settling at $103.41.

“The tight global oil market could become even tighter following last week’s Russian invasion of Ukraine,” said the President of Ritterbusch and Associates in Galena, Illinois, as he shared his thoughts on oil price and the ongoing conflict.

Supply concerns were aggravated after the United States and its allies announced that they would remove certain Russian financial institutions from the SWIFT payment system. This is a massive blow to the Russian economy as it makes it more difficult for its business and banks to access the global market, which also affects its oil buyers, which will now face new challenges regarding payments.