RELATED: Corn could be the answer to high gas pricesLundberg said prices dropped dramatically in the past two weeks, in part because higher prices reduced demand during the second half of March.However, the drop isn't predictive of further declines because among other things, the global oil supply is tight due to a dip in output last month by OPEC, Lundberg said.The war in Ukraine also has sparked global uncertainty.
The U.S. has banned all Russian energy supplies but Lundberg said sanctioned Russian oil is still finding "big buyers like India and China happy to pay discount prices."In a bid to reduce spiking energy prices, President Joe Biden last month ordered the release of 1 million barrels of oil per day from the nation’s strategic petroleum reserve for six months.On Thursday, the International Energy Agency said that its member countries are releasing 60 million barrels of oil from their emergency reserves on top of previous United States pledges.The Paris-based organization says the new commitments made by its 31 member nations, which include the U.S.
and much of Europe, amount to a total of 120 million barrels over six months, the largest release in the group’s history.AdvertisementRELATED: Biden tapping oil reserve for 6 months to control surging gas prices.