Jeremy Weir, CEO of crude oil trading giant Trafigura, said Tuesday that oil prices could reach $150 a barrel in the coming months, and by the end of the year, the market could start to see demand destruction.

Vail warned that rising commodity prices could drag down economic activity and eventually cool demand.

He told a conference, “If we see energy prices at very high levels for a period of time, we will eventually see demand destruction. It will be problematic to maintain such levels and keep global growth going.”

In March, oil prices reached their highest level since 2008 following the outbreak of the Russia-Ukraine conflict. The war in Europe has upended global energy markets and pushed up prices.

Both US WTI and Brent crude oil prices are currently above $120 per barrel. As Chinese demand recovers, price pressure is expected to increase.