Oil has fallen below $100 a barrel: what's going on?

Quotes of Brent crude oil at the auction on March 13 fell to a daily low of $98.45, down 1.5% from the previous close. Futures for the U.S. Mark WTI oil also fell to $93.03, losing more than 2%. At the same time during the session, Brent jumped up to $102.75 per barrel amid the ongoing escalation of the conflict in the Middle East, while WTI traded at an intraday high above $98.

Barron's attributes the situation to the publication of The Wall Street Journal that India is actively negotiating with Iran to ensure the passage of at least 23 energy tankers through the Strait of Hormuz, a narrow water passage through which about 25% of all offshore oil shipments and a significant volume of LNG are transported. In addition, the U.S. partially lifted sanctions on Russian oil for a month: a permit issued by the U.S. Treasury Department allows countries to purchase sub-sanctioned oil from Russia, shipments of which were already in process and at sea.

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