However, equities struggled to build on the week’s rally after Russia poured cold water on hopes that ceasefire talks were progressing, leaving the prospect of a protracted war in eastern Europe that has already sent shockwaves through the world economy.
Read more: Saudi oil chief says energy security imperiled by attacks
WTI tumbled more than five percent and Brent more than four percent as reports said President Joe Biden was looking at releasing a million barrels a day for several months as he tries to temper a surge in the market to more than $100.
Concerns about demand in China owing to a lockdown in Shanghai was adding to downward pressure.
The White House this month put an embargo on oil from Russia as part of a series of wide-ranging sanctions against the country for its invasion.
However, that sent prices soaring further and put added upward pressure on world inflation, which was already at multi-decade highs.
Officials said the president would make a statement Thursday on plans to cut energy costs "and lower gas prices at the pump for American families".
The news comes as the International Energy Agency urges other countries to further tap their reserves.
A coordinated release earlier this year, before the war, did little to temper a rally in prices, which were being boosted by the global economic reopening and expectations for a pick-up in demand.
Meanwhile OPEC and other major producers including Russia are preparing for their monthly meeting later in the day where they are expected to refrain from lifting output by more than their planned 400,000 barrels, despite the growing energy crisis.
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