07.23.08, 4:19 PM ET
NEW YORK (Reuters) - Commodity markets slumped broadly Wednesday, dragged by crude oil prices that dropped below $125 a barrel after the government reported a big rise in gasoline stocks, suggesting high pump prices were hitting U.S. fuel usage.
Crude futures on the New York Mercantile Exchange, or NYMEX, settled down $3.98, or 3.1 percent, at $124.44 a barrel -- the first close below $125 since June 4.
With the market worried about consumption in the United States and Europe, NYMEX crude is down more than $20 from the all-time peak above $147 a barrel hit on July 11. It was crude oil's steepest drop in dollar terms in the market's history.
Wednesday's losses came after the U.S. Energy (nasdaq: USEG - news - people ) Information Administration released a report showing a surprisingly large increase in domestic gasoline stockpiles last week, accompanied by weak implied demand.
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