Russia oil disruption would lead to 'significantly higher prices,' says Exxon CEO

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U.S. oil surged to the highest level since 2008 on Thursday, and Exxon CEO Darren Woods said prices could be heading much higher.

«If there is a significant supply disruption with respect to Russian crude… that will be very difficult for the market to make up and therefore that will lead to, I think, significantly higher prices,» he told CNBC's «Squawk on the Street.»

Oil prices surged above $100 per barrel last week as Russia invaded Ukraine, prompting supply fears in what was an already very tight market ahead of the invasion. Prices have kept climbing as the fighting intensifies.

West Texas Intermediate crude futures, the U.S. oil benchmark, hit $116.57 per barrel on Thursday, the highest level since September 2008. International benchmark Brent crude rose to $119.84, a price last seen in May 2012.

So far, the sanctions imposed by the U.S. and its allies have not targeted Russia's energy complex directly, but the ripple effects are being felt. International buyers are shunning Russian oil to avoid potentially violating the financial sanctions.

Additionally, companies, including Exxon, are pulling Russian operations.

The oil giant announced Tuesday evening that it was halting operations in the country and would make no further investments. The announcement came after BP and Shell said they would divest from their assets in Russia.

«Our business engages significantly with the government, the host governments where we operate. We felt like the decisions that were being made by the Russian government with respect to its incursion in Ukraine were inconsistent with our philosophies and how we run our business,» Woods told CNBC.

He said Russia's invasion was a «tipping point» in terms of working with the