Such a rise - the result of gas for oil substitution due to exploding nat gas prices around the globe - would be $10 higher than the bank's current forecast and would be accompanied by a prolonged period of high natural gas prices that already have had disastrous consequences for U.K. power providers.

According to Curie, who recapped a recent note from Goldman's Damien Couravlin, the tightening gas supplies in Europe which have led to a shattering of all price records, will elevate demand for oil as an alternative at a time when global crude output is constrained, Currie said adding that post-hurricane disruptions in the Gulf of Mexico would adversely impact supply.

"Supply chains are so severely depleted that the system can not accommodate any type of disruption," Currie said. Benchmark international oil futures rose 1.4% to $75.39 at 4:09 p.m. in London, extending the year-to-date advance to 46%.