Global prices also dropped similarly. Brent Crude, the global oil benchmark, plummeted $8.04 Tuesday to $98.86 from its recent high of $127.70.
Oil prices dropped significantly at the start of the Covid pandemic, falling into the negative. In April 2020 the price of WTI crude oil was -$37. As the economy recovered, the price of oil has consistently risen.
In the midst of the Kremlin's ongoing special military operation in Ukraine, prices skyrocketed over fears that Russian oil supplies would be cut off from the rest of the world.
While the United States, Canada and much of the world has instituted crippling sanctions on Russia, including for oil and gas, much of Europe has continued to purchase Russian fossil fuels, easing investor fears and bringing the price back down.
An increase of COVID cases in China, the world’s largest oil consumer, may also decrease overall demand and investors are reacting to that possibility. Reports also said that the US was becoming more open to oil from countries it previously shunned, such as Iran and Venezuela.
On Tuesday the US State Department reiterated that it will not replace Russian oil with Iranian oil in the event of a revived JCPOA deal.
Despite the drop in crude oil prices, there has been little relief for consumers at the pump. According to AAA (via CNBC) the average price of gasoline in the US has dropped from its all-time high of $4.331 on Friday to $4.316 on Tuesday, a drop of just 0.35%.