In the energy market on Wednesday, oil plummeted to the biggest one-day percentage loss in 7 years, with crude for February delivery closing at $42.63/barrel, down $5.95. February reformulated gasoline fell 11.28 cents, to $1.0764/gallon.

In its weekly inventory survey, the Energy Information Administration reported that the nation’s crude stocks shot up by 6.7 million barrels in the week ended January 2. Gasoline inventories increased 3.3 million barrels, while distillate stocks rose by 1.8 million barrels. Refineries were operating at 84.6% of capacity last week, up from the prior week’s 82.5%.

“The stock build should be enough to chase the bulls back into the barn,” said James Williams, of WTRG Economics. “The substantial builds in crude oil, gasoline and distillates ought to bring the bears back from a short hibernation.”

Also helping oil lower was an easing of Middle East tensions after reports of a temporary truce in the Gaza Strip to allow shipments of humanitarian relief, plus the announcement of an Egyptian proposal for a more permanent end to the conflict.

Source: Crude Plunges Most In 7 Years

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