Despite Russia's war on Ukraine, OPEC maintains steady output, causing oil prices to reach their highest level since 2011.

• Since 2011, the highest level of oil has been reached on Wednesday due to the escalation of Russia's war on Ukraine.
• Despite the recent surge in oil prices that pushed them above $100, OPEC and its allies chose to maintain production levels.
• John Kilduff, partner at Again Capital, stated that there is no relief as this is a pivotal moment for the market and the world, and supplies are affected.

On Wednesday, U.S. oil reached its highest level in over a decade, with Brent, the global benchmark, hitting $113 per barrel. This occurred after OPEC and its oil-producing allies, including Russia, decided to maintain production levels.

Prior to Russia's invasion of Ukraine, the oil market was already tight. Now, with countries avoiding oil from key producer Russia, traders are concerned about potential supply shortages.

The U.S. oil benchmark surged more than 8% to $112.51 per barrel, reaching its highest level since May 2011. Meanwhile, the global benchmark also increased by more than 8% to $113.94 per barrel, marking its highest level since June 2014.

On Tuesday, WTI and Brent both experienced significant gains, with WTI increasing by 8.03% to $103.41 per barrel and Brent advancing by 7.15% to $104.97. However, by the end of the day, WTI had settled at $110.60 per barrel, a 6.95% increase, while Brent had advanced by 7.58% to $112.93.

Despite the surge in oil prices above $100, OPEC and its allies announced on Wednesday that they will boost production by 400,000 barrels per day in April compared to March.

John Kilduff, partner at Again Capital, stated that there is no relief as this is a critical moment for the market and the world, and supplies are at stake. He emphasized that the world must take a stand against Russia by cutting off its oil exports, which the market cannot afford to lose.

Last Thursday, both WTI and Brent oil prices surpassed $100 for the first time since 2014 due to Russia's invasion of Ukraine, causing supply concerns.

As the War in Ukraine continues, the tight oil market may lead to a further risk to supplies, causing Brent crude to potentially reach the $120 level if sanctions are placed on Russian energy, according to Ed Moya, senior market analyst with Oanda.

On Tuesday, the International Energy Agency and its member states declared plans to release a combined total of 60 million barrels of oil reserves in an attempt to mitigate the recent increase in oil prices. Among the countries participating in this initiative, the United States will contribute by releasing 30 million barrels of oil.

But the announcement did little to calm markets.

Goldman Sachs wrote to clients that the relief announced was not sufficient, and that demand destruction through higher prices is now the only way to rebalance the market, as supply elasticity is no longer relevant in the face of a potential large and immediate supply shock.

The demand for oil has rebounded, while supply remains constrained, resulting in both WTI and Brent being up more than 40% year to date. Global producers have kept output in check, and OPEC and its oil-producing allies have been gradually returning barrels to the market after implementing an unprecedented supply cut of nearly 10 million barrels per day in April 2020.

Recently, the group has been increasing production by 400,000 barrels per day every month.

RBC believes the producer group will likely stick to the current easing plan and avoid getting involved in the deepening security crisis involving Russia, according to a note to clients before the meeting.

If there is a physical supply disruption, the firm may shift its strategy in the coming weeks.

Russia's energy complex, which is a major producer and exporter of oil and gas, particularly to Europe, has not been directly targeted by sanctions. However, the financial sanctions imposed on Russia have caused some foreign buyers to become hesitant to purchase energy products from the country.

According to Amrita Sen, the founding partner and chief oil analyst at Energy Aspects, approximately 70% of Russian crude oil exports are currently unaffected by the banking sanctions.

The market is experiencing panic at the current $110 oil price, and it is predicted to rise even further to $150 or more due to the only solution being demand destruction, as stated by a market expert on CNBC's "Squawk Box" on Wednesday.

- CNBC’s Eustance Huang and Patti Domm contributed reporting.