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The S&P 500 energy sectors lost 2% overnight, as WTI oil dropped to its lowest level in three months. WTI oil crashed through its technical support levels and briefly touched US$42.00 before closing the session at US$43.05, amounting to a 2.6% decline. Markets are concerned that the growing gasoline inventories during the US’s peak driving season alongside the steady increase in the Bake Hughes drill rig counts are likely to see US crude oil inventories blow out to record levels again in the second half of the year. But the precipitative cause of the selloff overnight seems to have been the release of last week’s CFTC data showing net positioning in crude oil futures were cut further.