China should continuously step up domestic oil and gas exploration and exploitation to cope with fluctuating oil prices and ensure sufficient oil and gas supply, analysts said.

Oil prices this year are expected to remain high due to geopolitical tensions. And China, a major oil and gas consumer that has been heavily reliant on oil imports, should further step up domestic oil and gas exploration－including unconventional oil and gas－in the face of rising global oil prices, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.

Global energy demand has been emerging from the shadow of the COVID-19 pandemic with a clear rebound and will contribute to the coming rise in oil prices, Luo said.

Both Brent and West Texas Intermediate prices hit their highest levels since July 2008, with Brent for April delivery touching $139.13 a barrel and WTI $130.50 a barrel. Oil traders are betting prices may top $200 this month, according to Bloomberg.

US Secretary of State Antony Blinken was quoted by NBC as saying that the United States was in "active discussions" with European nations about possibly banning Russian oil imports while maintaining a steady global supply of oil.

Luo said this will only lead to a continuous rise in oil prices as Russia is the third biggest oil producer worldwide, providing 10 percent of global oil supply last year.

Under the current pricing mechanism, China will adjust domestic prices of refined oil products when international crude prices translate into a change of more than 50 yuan per metric ton for gasoline and diesel over a period of 10 working days. The floor and ceiling aim to buffer the negative effects of violent fluctuations in international oil prices, as excessively high prices will add to consumer burdens. Last week marked the fifth oil price rise this year as global crude prices have been rising since the end of December due to geopolitical tensions.

Lian Weiliang, deputy director of the National Development and Reform Commission, said the government will drastically step up investment in oil and gas exploration to increase reserves and production in the country.

Meanwhile, China will also accelerate solar and wind power generation capacity construction in the Gobi Desert and other arid regions amid efforts to boost renewable power consumption, while coming up with more peaking power sources including pumped storage to ensure efficient and effective power generation, Lian said during a news conference on Monday.

China will also utilize in an orderly fashion advanced coal capacity to make sure coal production remains at reasonable levels, he added.

The commission said it is pushing for another 5 billion cubic meters of gas storage facility construction.

This will help the country's emergency backup, and peak modulation power supply will exceed 300 million kilowatts. The government will also guide major energy companies and major energy consumers to come up with more reserves.

Regional bourses had a bleak Monday. The Shanghai Composite Index slid 2.17 percent to close at 3372.86 points and Hong Kong's Hang Seng Index plummeted 3.93 percent to close at 21045.21 points. Japan's Nikkei dropped 2.94 percent while South Korea's Kospi shed 2.29 percent. Meanwhile, Australia's ASX 200 fell 1.02 percent and New Zealand's NZX 50 slipped 1.88 percent.