By Gina Lee

Investing.com – Oil was up on Wednesday morning in Asia, as a and the U.K.’s plan to phase them out by the end of 2022 raised worries about tightening supply.

At 11:57 pm ET, the price had risen to $130.89 (or 4:57 am GMT) and then rose to $125.80 at 1.70%.

On Tuesday, the U.S. placed an immediate ban upon Russian oil and energy imports. The U.K. plans to phase out Russian oil imports until the end 2022. The moves are the latest sanctions in reaction to Russia’s invasion of Ukraine on Feb. 24, and fears of further supply disruptions have boosted buying, according to some investors.

“On top of the U.S. and U.K.’s announcement effects, fears of further disruptions of supply from Russia due to intensifying sanctions on Moscow prompted fresh buying,” Nissan Securities general manager of research Hiroyuki Kikukawa told Reuters.

“But Monday’s highs are likely to become a ceiling in short-term as speculative buy is expected to slowdown soon, and countries of the northern hemisphere will head to spring when fuel consumption drops,” he said.

On Monday, oil prices soared to their highest level since July 2008. Brent futures reached $139.13 per barrel while WTI futures reached $130.50. Investors are also monitoring talks regarding the reactivation of the 2015 Iran Nuclear Deal, which could lead to Iranian crude being added to this market. Talks between Iran and the world powers are slowing down.

Rystad Energy analyst said Tuesday that the global oil price could soar to $200/barrel if Russia and Europe stop importing Russian oil.

The level of black liquid in the ground remains at or near its maximum for 14 years. However, consumers will react more strongly to increased prices than to COVID-19 and fuel demand could fall.

U.S. reported a total of 2.81 million barrels during the week ended March. 4. Investing.com forecasts a draw at 833,000 barrels. A draw of 6.1 million barrels was made during the week before.

Investors await the announcement, expected later today.