Crude oil is getting smoked

Crude oil is sliding again on Friday morning.

West Texas Intermediate crude futures in New York fell nearly 3% to as low as $40.11 per barrel.

The slide towards the $40 per barrel level gained momentum earlier this week after the Energy Information Administration reported a larger-than-expected build in crude inventories last week.

This added to signs that the oil market remains oversupplied, as the 12-member oil cartel OPEC continues to pump at an unrelenting pace.

Oil is now headed for its longest weekly losing streak since 1986, according to Bloomberg. Oil is in a bear market, and prices are down more than 30% from recent highs.

The drop on Friday comes amid a bigger sell off in global markets. The major averages are seeing their sharpest weekly loss of the year, and the Dow lost more than 300 points.

Later on Friday, driller Baker Hughes will release its weekly tally of oil rigs. The count has risen for four straight weeks.

Here's a chart showing the slide in oil prices on Friday:

Finviz