On Tuesday, Brent oil futures finished under $100 a barrel, which is the first time it closes below the key benchmark level - $100 - since the second day of the Russian special military operation in Ukraine.

Read more: US oil reaches all-time high amid sanctions on Russia

The futures for delivery in May ended at $99.91 a barrel, a 6.5% decrease. 

West Texas Intermediate, a US benchmark for crude, dropped 6.4% to $96.44 per barrel. 

China has recently taken the decision to place tens of millions of people under lockdown restrictions as COVID-19 cases increased significantly, which raises worries about oil demands taking a hit. 

Louise Dickson, a Rystad Energy analyst, said China's severe restrictions can put 500,000 barrels per day at risk. 

"China oil demand risk is real," Dickson said, explaining that a strengthening dollar will pressure prices of oil since it's purchased in USD.

Read more: China's tools to help Russia's economy

On Wednesday, the Federal Reserve is expected to start increasing the interest rate which would push the dollar higher.

With ongoing uncertainty due to the situation in Ukraine, Rystad warns that this drop may not last too long, as West-led sanctions on Russian energy affect the global market.