Oil crashes 2% to $76, then rallies back over $78 as the push and pull of a China slowdown versus Middle Eastern conflict/s. Oil stays bid over $78.

The oil price drops 2% on the HSBC massive writedown of $3 Billion of loans connected to the Chinese lender China's Bank of Communications (BoCom), which HSBC owns 19%.   That are essentially credit losses on Chinese commercial and /or retail loans that now have 0% worth, ala the credit crisis of 2008.  Remember that?  

Rallying back up over $78, after the U.S. commits to its "self defense" strikes on Houthi positions in Yemen.

There is no doubt China is economically in trouble, hence Central Banks one by one pausing rates, on their fear of a China setting off a global recession, yet inflation is so entrenched into the Western economies a 1% rate increase may have to occur to suppress inflation, which is on the incline again.  Central bank reluctance is only exacerbating that stagflation fear of 2022.

Oil is bid over 78.

Next price resistance is 80.

Please refer to charts.