An analyst warns that economic devastation could occur if oil prices continue to rise.

• According to Paul Sankey of Sankey Research, there are concerns that high oil prices may lead to a recession, decrease oil demand, and slow down many economies.
• According to a research note, the firm predicts that oil trading will fall between $100 and $150 per barrel until the conflict in Ukraine is resolved.
• An immediate outage occurred, causing a major physical disruption in an already tight market with low inventories, as stated.

The Russia-Ukraine crisis is causing oil prices to rise due to supply concerns, which could result in demand destruction and an economic recession, according to an oil analyst.

According to Paul Sankey of Sankey Research, we face economic destruction if the price of oil rises from $120 to $150 per barrel and we don't have enough oil.

According to a research note, the firm predicts that oil trading will remain between $100 and $150 per barrel until the situation in Ukraine is resolved.

The international benchmark climbed 3.26% to $114.21 per barrel, after earlier crossing the $119 level.

Despite lower prices, oil cargoes from Russia are not moving following the invasion and news of sanctions, according to Sankey, who spoke on CNBC's "Squawk Box Asia" on Thursday.

An immediate outage occurred, causing a major physical disruption in an already tight market with low inventories, as stated.

He added that the elevated prices will likely lead to a recession, decrease oil demand, and slow down many economies, causing concern among everyone.

OPEC’s role

Although the significant fluctuations in oil prices occurred, Sankey believed that it was still appropriate for OPEC and its partners to maintain their planned production increase in April.

The emergency situation is so dire that it's advisable to avoid the actions of Western governments, which involve releasing emergency reserves, resulting in depleted stocks.

If Saudi Arabia and the UAE deplete their reserves, the consequences are uncertain, the speaker noted.

Sankey warned that if risky supply sources were to disappear, as seen in Libya and Iraq, oil prices could skyrocket to $200 per barrel.

He stated that OPEC+ is "likely simply waiting to observe how this unfolds."

Not everyone agrees.

David Goldwyn, president of Goldwyn Global Strategies, an international energy advisory consultancy, stated that it is a huge error.

Saudi Arabia and the UAE, with their ability to increase oil production, are being punished by their main future market, Asia, according to him.

He stated that they were making themselves an unreliable supplier and undermining the reasons for getting off Middle East oil by putting themselves on the wrong side of history.

— CNBC’s Sam Meredith contributed to this report.