Oil prices fall further, now over 27% below their recent peak.

On Tuesday, oil suffered significant losses, following Monday's decline, due to various factors affecting market sentiment, such as negotiations between Russia and Ukraine, potential slowdown in Chinese demand, and the anticipation of trade unwinding before the Federal Reserve's predicted rate hike on Wednesday.

Both the U.S. oil benchmark and the global benchmark fell below $100 per barrel on Tuesday, a significant drop from the $130 they were fetching a week earlier.

WTI and Brent both ended the day with losses, with WTI falling 6.38% to $96.44 and Brent dropping 6.54% to $99.91 per barrel. During the session, both commodities reached their lowest points, with WTI trading at $93.53 and Brent at $97.44.

On Monday, WTI and Brent experienced a decline of 5.78% and 5.12%, respectively.

The Ukraine-Russia stagflation wave, FOMC hike this week, and progress in Ukraine-Russia negotiations are causing growth concerns, which are affecting prices, according to Jeffrey Halley, senior market analyst at Oanda. He believes that the top is in for oil prices, and the best cure for high prices may be high prices, as the old adage suggests.

The price of crude surpassed $100 per barrel for the first time in years on the day Russia invaded Ukraine, and it kept rising as the conflict escalated.

Last week, WTI hit a high of $130.50 a barrel, while Brent traded as high as $139.26 per barrel. Prices jumped due to traders' fears that Russia's energy exports would be disrupted. The U.S. and Canada have banned Russian energy imports, while the U.K. has said it will phase out imports from the country.

In contrast to other European countries that are reliant on Russia's oil and gas, no similar measures have been taken by them.

Rebecca Babin, senior energy trader at CIBC Private Wealth U.S., stated that the initial spike in the market was driven by fear of supply shortages. However, without any change in the facts, the market is now trading on the hope that the commodity market won't be as bad as initially feared.

"The conflict is making it unclear what will happen with crude supplies in the future," she stated.

Despite some self-sanctioning, Russian energy continues to attract buyers, including from India.

The slowdown in demand resulting from China's efforts to control the spread of Covid-19 is affecting oil prices, as the country is the world's largest oil importer.

Resuming the deal with Iran could potentially increase the supply of oil in the market, as per Russia's Foreign Minister Sergey Lavrov, according to Reuters.

Recently, oil has experienced significant fluctuations, rapidly changing direction with each new geopolitical event.

Tamas Varga from brokerage PVM stated that the market is becoming more confident that a significant supply shock will be avoided, or if it is the mother of all corrections.

The price of gas has reached a record high due to the increase in oil.

Since then, gas prices have decreased slightly. On Tuesday, the average price per gallon was $4.316.