US oil prices briefly tumbled below $100 a barrel on Monday, unwinding a significant chunk of the recent spike caused by Russia’s invasion of Ukraine.
Oil plunged more than 8%, touching a low of $99.76 a barrel. That means the oil has lost almost roughly a quarter of its value since touching a near 14-year high of $130.50 a barrel on March 6.
It’s the first time oil has traded below $100 since March 1.
The selloff should ease fears of an energy-driven recession in the United States and, if sustained, should bring some relief to drivers dealing with record gasoline prices.
Brent crude, the world benchmark, dropped more than 7% to $104.35 a barrel in recent trading. That marks a sharp pullback from the recent peak of nearly $140 a barrel.
Traders blamed Monday’s losses on concerns about Covid-19 lockdowns in China and hopes for progress in negotiations between Russia and Ukraine.
Despite the recent sales, oil remains up by more than 30% on the year.