Oil prices dropped 3 percent on Thursday as rising crude stockpiles in the United States, the world's largest energy consumer, countered concerns over strong global demand. Big money speculators, who are behind mammoth gains in the oil and commodities markets this year, unwound their long positions -- leading some analysts to wonder if the oil rally had finally peaked. "This is it. This is the dam break," said Ed Silliere, analyst at Energy Merchant Intermarket Futures. "I'd have to say the bull market is done." U.S. light crude settled down $1.74 to $54.11 a barrel, more than $4 below Monday's record $58.28. London Brent crude fell $1.23 to $54.04 a barrel. U.S. crude prices have surged about 25 percent this year, driven by concerns that rapidly rising energy demand in Asia's emerging economies, especially China and India, could outpace supply growth. But the red-hot prices have attracted a tide of imports to the United States, building the nation's stockpiles to their highest in nearly three years. "Crude inventories are not tight enough to justify current prices," said J.P. Morgan bank in a report. --More 2242 Local Time 1942 GMT
