The price of oil shot up to over $106 a barrel today, as the political situation in Libya remains tense and investors watch Saudi Arabia for supply outages.

US crude for April went up by $1.97 to stand at $106.39 a barrel, the highest price since September 2008, and ICE Brent crude for April rose $1.25 to $117.22, reports Reuters.

The rise in prices is adding to concerns that high energy costs may affect the global economic recovery.

US Government plans to release emergency oil stockpiles as prices rise and policymakers look for ways to contain the negative impact of the price hike on the country’s economy.

Saudi Arabia also intends to bridge any supply gap caused by export cuts from Libya and is producing about nine million barrels per day, with a spare capacity of 3.5 million barrels per day.