U.S. Oil Prices Dip $15, First Downturn In Almost a Week After Record Highs

U.S. oil prices dropped for the first time in nearly a week Wednesday after reaching a 13-year high of more than $130 per barrel earlier in the week.

West Texas Intermediate (WTI) crude oil dropped $15, more than 12 percent, to $108.70 per barrel, CNBC reported.

The drop comes amid fears in the U.S. of soaring gas prices after the U.S. imposed a ban on Russian oil. President Joe Biden has reportedly initiated talks with several oil-producing countries, such as Venezuela and Saudi Arabia, to boost oil imports into the U.S.

Brent crude oil prices also decreased Wednesday in their biggest one-day drop since April 2020. They fell 13 percent, or $16.80, to $111.10 per barrel, CNBC reported. On Monday, Brent prices hit $139, the highest level since 2008.

WTI is the standard measure for U.S. oil prices, and Brent is the international benchmark. For WTI, Wednesday was its worst day since November 26, CNBC reported, which was the same day that the World Health Organization identified the Omicron coronavirus strain as a variant of concern.

In a positive sign, the United Arab Emirates has said that it would support ramping up oil production under the authorization of the Organization of the Petroleum Exporting Countries (OPEC).

"We favor production increases and will be encouraging OPEC to consider higher production levels," Yousuf Al Otaiba, the UAE ambassador to the U.S., said in a statement. "The UAE has been a reliable and responsible supplier of energy to global markets for more than 50 years and believes that stability in energy markets is critical to the global economy."

The price drop also came as comments from Iraq's Minister of Oil Ihsan Abdul Jabbar Ismail were thought to indicate that country's willingness to boost output, Reuters reported. Those comments, though, were later clarified to reflect that production increases by OPEC+, a group comprised of the OPEC nations and other major non-OPEC oil producers, should be sufficient to address any shortages.

Biden said during remarks Tuesday that, while the decision to ban Russian oil imports was meant to "inflict further pain" on [Russian President Vladimir] Putin, "there will be costs as well here in the United States."

"The decision today is not without cost here at home. Putin's war is already hurting American families at the gas pump," Biden said.

He noted that gas prices in the U.S. had increased since Russia invaded Ukraine and that they were expected to increase further with the oil embargo. But he promised to do all in his power to help mitigate the impacts in the U.S., citing the release of millions of barrels of oil from joint reserves.

Update 03/09/22, 4:40 p.m. ET: This story was updated with additional information and background.