Oil Update: Crude Prices Nosedive

With reports of a swelling gasoline supply coming out this week, gasoline futures have slipped of late. Many commodities fell in turn today, including crude oil futures. After an early day surge that took light, sweet crude for July delivery above the $72 mark, prices nosedived late and settled at $69.55 on the New York Mercantile Exchange. That comes to a loss of $1.82

The last time crude settled below $70 was on June 8. The July contract is moving closer to its Monday close and eyes are beginning to fix on the August contract, which was also down $1.90 to $70.01 by the afternoon.

Earlier in the day, prices on the July contract cruised past the $72 mark based on a flurry of news. The dollar remained weak against the euro and news is continuing to come in about unrest in Nigeria threatening oil pipelines.

But the late afternoon slump went along with declines in energy stocks too.

The Amex Oil Index was sliding down nearly a half percent in the afternoon.

Components like Anadarko Petroleum(APC Quote) and Hess(HES Quote) were tracking downward, losing 3.5% and 2.2% respectively. BP(BP Quote) was in positive territory, gaining 2.35%, while industry giant Exxon Mobil was changing hands in the red, losing 1.15% before the closing bell.

Meanwhile, the Philadelphia Oil Service Index was losing nearly 1% to come in at 165.52.

The United States Oil Fund ETF was also down 2.3% in the afternoon.