Tuesday’s oil losses were significant. Monday’s declineAs sentiment was influenced by a variety of factors, such as talks between Russia, Ukraine and a possible slowdown in Chinese demand, and the unwinding trades prior to Wednesday’s Federal Reserve rate increase.

Both West Texas Intermediate crudeThe U.S. benchmark for oil and the global benchmark Brent crudeWall Street’s Tuesday morning trades saw crude oil prices drop to $100 per barrel, down from more than $130 per barrel a week ago.

WTI traded at $95.26 a barrel on Tuesday, down 7.6% after dipping 5.78% on Monday. Brent fell 6.9% to $99.54 per barrel, speeding Monday’s 5.12% drop.

Jeffrey Halley of Oanda, senior market analyst, stated that prices are being affected by growing concerns about the Ukraine-Russian stagflation and FOMC’s hike this week and hope for progress in Ukraine-Russia negotiations. It seems to me that the best remedy for high oil prices is the old saying that “high prices is the best medicine”. He also said that he thinks the bottom is in place for oil prices.

The price of crude oil soared to $100 per barrel the day Russia invaded Ukraine. Prices continued rising as conflict escalated.

Brent was trading at $139.26 per barrel while WTI reached a record high of $130.50 on March 7. The fear that Russia would disrupt its energy exports caused prices to rise. The U.S., Canada and Japan have so far banned Russian imports. However, the U.K. stated that it would gradually eliminate imports from Russia.

Other European countries, however, that are dependent on Russia for oil and gas have not taken the same steps.

Although self-sanctioning may have been successful to some extent, experts believe that Russian energy continues to find buyers from India.

China’s most recent moves to reduce the spread Covid-19 have also had an effect on prices. China is the largest importer of oil in the world, and any decrease in demand will impact prices.

Deals with Iran may also bring new oil barrels to the market. Sergi Lavrov of Russia is supportive of the resumption. according to Reuters.

Recent sessions have seen oil volatility, with oil fluctuating between gains or losses depending on the geopolitical developments.

Tamas Varga, brokerage PVM stated: “Is this the mother of all corrections? Or is the market turning increasingly confident that there will not be a major supply shock?”