Crude oil is getting smoked.
On Wednesday afternoon, West Texas Intermediate crude oil futures in New York fell more than 3% to as low as $44.47 per barrel.
Earlier, the Energy Information Administration released its latest short-term energy outlook. The EIA estimated that US oil production fell by 140,000 barrels in August compared to the previous month. It pegged its WTI forecast at $49 per barrel for 2015, and $44 per barrel next year.
It also noted that the current value of futures and options contracts that expire in December indicate that the market expects oil prices anywhere between $32 and $73 per barrel in December.
Later today, the American Petroleum Institute will release its weekly data on US crude stockpiles. The EIA will publish its numbers on Thursday.
Here’s a chart showing the move lower in WTI today: