NEW DELHI: Lower supply, as well as tensions between Russia and Ukraine, boosted the price of Brent crude oil to an almost 8-year high on Wednesday.Furthermore, the Brent-index crude oil price is likely to remain high due to strong worldwide demand.

As a result of the worry of supply shortages, crude oil prices have risen over 15% in the last two days.Brent-indexed crude oil prices surged to more than $111 per barrel on Wednesday.

For Tuesday, it had risen to $102 per barrel, up from $98 on Monday. Russia is currently the world's third largest crude oil producer. Sanctions against Russia are expected to reduce global supplies and impede growth.

Further, after state elections  get over next week, price hikes in petrol and diesel are set to resume to close the Rs 9 a litre gap created by worldwide oil prices surging beyond USD 100 a barrel. Fears that oil and gas supplies from energy powerhouse Russia could be disrupted, either by the conflict in Ukraine or retaliatory western sanctions, pushed international crude oil prices above USD 110 a barrel for the first time since mid-2014.

Rupee falls 44 paise against the dollar to clkose at 75.77

Petrol, diesel price hike likely to restart from next week

As crude oil prices rise, rupee falls to 75.35 Vs US dollar.