Oil tops $110 a barrel even after 31 countries agree to release 60 million barrels total from emergency reserves

• Crude oil prices are up sharply Wednesday, with Brent futures topping $110 a barrel.
• Russia is the world's third-largest oil producer and there are fears the crisis in Ukraine could disrupt energy supply.

Crude oil prices are up sharply on Wednesday, surging more than 5% on concerns of a supply crunch even after 31 countries agreed to release 60 million barrels of oil from reserves around the world.

International benchmark Brent Crude oil futures were up 6% at $111.31 a barrel at 7:33 a.m. EST, while US benchmark West Texas Intermediate (WTI) futures were up 5.9% at $109.48 a barrel.

The sharp gains come even as member countries in the International Energy Agency (IEA) agreed on Tuesday to release 60 million barrels of oil from their emergency reserves "to send a unified and strong message to global oil markets that there will be no shortfall in supplies as a result of Russia's invasion of Ukraine," according to an IEA press release.

Russia is the world's third-largest oil producer behind the US and Saudi Arabia, according to the IEA. There are fears the crisis in Ukraine could disrupt energy supply, which in turn would add to already red-hot global consumer inflation.

"Markets dismissed the notion that 60 million barrels of strategic reserves released will be consequential to the risks of Russian supply jeopardized — given Russia pumps more than that in just six days," said Vishnu Varathan, Mizuho Bank's head of economics and strategy, in a Wednesday note.

"Inflation risks have not in any way receded," Varathan added. "If anything, it has been brutally accentuated by supply shocks posed by Russia."

Both Brent and US WTI crude oil prices are up over 40% year-to-date.

Last Thursday, crude oil hit $100 a barrel for the first time in over seven years after Russian President Vladimir Putin announced a military assault against Ukraine.

The Organization of the Petroleum Exporting Countries and its allies led by Russia will be meeting later on Wednesday to discuss April's oil output.