The Energy Select Sector SPDR Fund (NYSEArca: XLE) dropped more than 3% in afternoon trading Tuesday as oil futures experienced heavy selling pressure for the second straight day.

The $11.5 billion sector exchange traded fund (ETF), which invests in U.S. energy stocks, counts Exxon Mobil and Chevron as its top holdings with over 10% in each. The energy ETF was testing its 50-day moving average on Tuesday.

The largest oil ETF was down nearly 3% at last check after the International Energy Agency expressed concerns high prices will cut demand.

Energy Select Sector SPDR Fund

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