Late Selloff Hits Oil

Although crude prices could remain volatile, they probably won't fall below $55, according to Larry Levin, energy analyst at Secrets of Traders in Chicago. "There are a ton of buy orders at $55, so that is probably the bottom of its trading range in the near term," he said.

Meanwhile, major energy stocks were weaker. ConocoPhillips (COP Quote) fell 1.8%, Chevron (CVX Quote) was down 1.2%, and Exxon Mobil(XOM Quote) lost 1.2%.

Elsewhere, A.G. Edwards downgraded the shares of E&P firm Breitburn Energy(BBEP Quote) to hold from buy. Breitburn dropped 1.1% to $31.34.