Oil prices on Tuesday dipped below $100 a barrel for the first time in two weeks, unwinding most of the spike in prices since Russia’s invasion of Ukraine following several geopolitical developments that could free up supply and tamp demand.
Brent futures, the international benchmark, dropped $7.00 to $99.99 a barrel as of 9:32 a.m. ET Tuesday, as U.S. West Texas Intermediate, the U.S. benchmark, dipped $6.82 to $96.20.
Oil prices plummeted after Russian Foreign Minister Sergei Lavrov said Tuesday Russia supported the resumption of the 2015 Iran nuclear deal that has been at a standstill since Russia demanded a written response from the U.S. to guarantee that Western sanctions on Russia would not cover any trade with Iran.
Following a temporary plunge below $100 a barrel on Monday, Tom Kloza, worldwide head of energy research for the Oil Price Information Analysis, told CNN that if oil prices remained stable, average gasoline prices would likely drop 20 cents a gallon–to still be above $4 a gallon. According to the American Automobile Association, national average gas prices were $4.31 per gallon on Tuesday morning, roughly 20 cents lower than Monday’s number.
