Oil experienced quite a steep drop shortly after 1:00 pm BST. The move was triggered by news from China. It was officially confirmed that China decided to tap into its strategic crude reserves. Chinese authorities said that by undertaking such a move they want to alleviate upward pressure on raw material prices. The move can be seen as significant as this is the first time China has decided to release its strategic crude reserves.
Taking a look at OIL at H1 interval, we can see that news pushed price off the daily highs into fresh daily lows. Price plunged below the $72.35 support zone as well as 50-hour moving average (green line). Price is currently approaching the 200-hour moving average in the $72.00 area (purple line).
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Source: xStation5
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