NEW YORK (TheStreet) -- Stocks were sliding on Wednesday with the Dow Jones Industrial Average down triple-digits as crude oil prices fell to below $62 a barrel.
The Dow slipped 0.68%, or 121 points, putting it on track for its third consecutive day of losses. The S&P 500 slid 0.58%. The Nasdaq moved 0.65% lower.
West Texas Intermediate crude tanked 3.8% to $61.42 a barrel after OPEC warned that demand for oil in 2015 would hit 28.9 million barrels a day, its lowest point in 12 years.
"The downward revision reflects the upward adjustment of non-OPEC supply as well as the downward revision in global demand," OPEC said in its monthly report.
Oil giants Exxon Mobil(XOM) - Get Report and Chevron(CVX) - Get Report tumbled 2.5% and 3.1%, respectively, Marathon Oil(MRO) - Get Report fell 3.6% and Phillips66(PSX) - Get Report was down 2.1%. The Energy Select Sector SPDR ETF (XLE) - Get Report dropped 2.9%.
Small-cap Goodrich Petroleum(GDP) - Get Report and Oasis Petroleum(OAS) - Get Report slid after separately announcing plans to cut 2015 capital expenditures in half. Oil companies have been reassessing future projects in light of tumbling oil prices. Earlier in the week, ConocoPhillips(COP) - Get Report announced it was cutting its 2015 capex budget by 20%.
Airlines enjoyed a fresh rally as the drop in gasoline prices fueled investor appetite for the sector. American Airlines(AAL) - Get Report , Delta Air Lines(DAL) - Get Report , United Continental(UAL) - Get Report , JetBlue(JBLU) - Get Report and Virgin America (VA) were all higher.
Disney(DIS) - Get Report was also dragging on the Dow, down 0.71%, after Topeka Capital Markets downgraded the stock to a "hold" on a valuation call and after raising concerns a stronger dollar could deter global tourists from domestic parks.
JPMorgan(JPM) - Get Report slipped 1.7% after the Federal Reserve passed a proposal to impose risk-based surcharges on top global banks. Under the rules, JPMorgan would need to raise $22 billion to comply.
Costco(COST) - Get Report shares were 1% higher after beating first-quarter earnings estimates and as comparable-store sales rose 5%. Hovnanian Enterprises(HOV) - Get Report popped 5.6% as first-quarter earnings beat estimates.
-- Written by Keris Alison Lahiff in New York.