Oil Drops as Traders Weigh Potential Strategic Reserve Release By Bloomberg – Investing.com

Oil Drops as Traders Weigh Potential Strategic Reserve Release By Bloomberg – Investing.com

(Bloomberg) -- Benchmark oil prices fell more than 3% Wednesday, dropping below their 50-day moving averages for the first time in about two months, signaling more selling could be on the horizon in the coming days. 

futures dropped to a session low of $79.78 a barrel, slipping below the 50-day moving average for the first time since Sept. 10. West Texas Intermediate tumbled to a low of $77.69, easing below the 50-day moving average for the first time since Sept. 20.

The selloff in oil comes as the Biden Administration is considering a co-ordinated move along with consuming countries to unleash a wave of supply to curb a surge in energy costs and inflation. President Joe Biden and his Chinese counterpart Xi Jinping discussed the merits of releasing oil from their reserves in a virtual summit Monday but didn’t make a decision.