Many Expect $40 Oil

Crude oil fell another 1.5 percent on Thursday, settling at $48.48, the lowest level since March 31. And some traders say even lower prices are ahead.

“This market is headed to $40 before we go to $60 again,” said Bill Baruch, chief market strategist at Chicago-based iiTrader, citing reasons on both the supply and demand side of the equation.

In terms of demand, Baruch says the long-term picture looks bearish, with the International Energy Agency saying in a July report that global oil demand is set to slow in 2016.