Oil prices slumped for a third-straight session Wednesday, as comments from Saudi Arabia raised expectations of increased supply and after weely data from the Energy Information Administration (EIA) showed inventories climbed far more than projected.
Brent crude futures tumbled more than 3 percentto below $108 a barrel. And U.S. light, sweet crude also fell more than 3 percent, trading near $92 a barrel. The contract expires on Thursday.
Here are some of the bearish signals the market has been watching:
- In addition to huge build in oil supplies, there's been a dramatic decline in distillate demand—down 11 percent year-over-year.
- Brent crude broke below its 200-day, 50-day moving averages and Fibonacci retracement level. These are key technical indicators—and reinforce bearish sentiment in this market.
- U.S. oil prices may be headed to $90 a barrel, after hitting $100 just last Friday.
- One short-term bear's outlook: John Kilduff of Again Capital said WTI oil could be headed toward $88 a barrel.
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