Oil prices dropped in a sudden move on Wednesday, giving back some of the rally this month due to supply disruptions stemming from Russia's invasion of Ukraine.
It was on track for its worst day in more than a year when it traded at $108 per barrel. During a time of heightened tensions, the price of oil briefly hit a 13-year high.
The international benchmark fell 12% to $112 and was headed for its biggest one-day drop since November. It was the highest since 2008.
There are indications that the U.S. is encouraging more oil production from other sources. Iraq said it could increase output if asked. The Secretary of State indicated that the United Arab Emirates would support increased production by the Organization of the Petroleum Exporting Countries.
John Kilduff of Again Capital said on CNBC that the $130 price point was a factor in the oil market's siege mentality. I don't want to get ahead of myself.
The International Energy Agency released 60 million barrels of oil reserves last week to make up for supply disruptions caused by Russia's invasion.
The price of oil has increased this month as Russia invaded Ukraine.
Ed Moya, senior market analyst at Oanda, said in a note that the world is working together to tackle surging oil prices and that has put a short-term top for crude.
The United Kingdom will stop buying Russian oil by the end of the year. The European Union has a plan to wean itself off of Russian fossil fuels.
CNBC's Jesse Pound contributed reporting.