Benchmark West Texas crude spurted above $105 a barrel before easing to $104.73 in noon trading, while Brent crude jumped $2 to $111.38 - highest since 20011 - on concerns of supply disruptions.
The runup is also driving gasoline futures, which could push pump prices higher and faster than normal ahead of the spring and summer driving season. Wholesale gasoline contracts for April delivery rose nearly 2% to $3.03 a gallon. Wholesale prices are typically 60 to 75 cents less than retail prices.
Pump prices currently average $3.46 a gallon nationwide, up 18 cents a gallon from a month ago, but 29 cents below year-ago levels.
"Any time you have a situation like this, you're going to have energy markets move,'' says Nick Leblebijian, a partner at Chicago-based Lakefront Futures & Options, who says crude could add another $5 a barrel, possibly more, without a swift resolution.
"If this were to continue, $120 is possible,'' Leblebijian tells USA Today.
Russia is also a leading natural gas producer. But natural gas futures were down 1% to $4.55 per million British Thermal Units. Natural gas prices are up sharply this year, due largely to depleted inventories and a bitterly cold winter in much of the U.S.
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