Crude oil is sliding to new lows

Crude oil is heading even lower to levels last reached six years ago.

On Thursday morning, West Texas Intermediate crude futures fell more than 2% to as low as $42.28 in New York.

This week, we got yet more evidence that oil supply is greater than demand.

On Tuesday, the 12-member oil cartel OPEC reported that its output rose to a 3-year high in July. Iran was one of the biggest producers, and the country is expected to boost its output for exports when economic sanctions are lifted.

In the US, the latest data from the Energy Information Administration released Wednesday showed that crude inventories fell by 1.68 million barrels last week, a smaller-than-expected decline. Stockpiles remain at the highest levels for this time of year in at least 80 years.

Also on Wednesday, the International Energy Agency said in a monthly report that the global oil market will remain oversupplied through 2016, even though lower oil prices are expected to boost demand growth at the fast pace in five years.

WTI fell into a bear market last month, and is now down as much as 30% from highs reached in June.

Here's a chart showing the decline in crude today:

Here's what the last few weeks have looked like:

And here's a look at the surge in oil output:

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