Oil prices plunged today as the weekly inventory report once again showed a higher than expected build in crude oil inventories. Supplies of crude oil are actually well above the 5 year average, but traders have kept the market near all time highs based on a shortage of refinery capacity. It appears that the spectulators headed for the exits after todays numbers.
"Oil plummeted $2.59 to $51.61 on the New York Mercantile Exchange following the government's weekly inventory report, which showed a 5.5 million barrel increase in crude supplies, but a 300,000 barrel draw on gasoline; analysts had been hoping for a build. The energy stocks in the S&P 500 collectively shed 2.58 percent on the news, according to the ETF that tracks the sector; Exxon Mobil Corp. dropped 1.5 percent, or 89 cents, to $58.38, making it Dow's worst performing stock for the day."
The XLE ( Energy Services ETF ) has been one of the best performing of the year, but closed down over $1 today on heavy volume.
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