The oil bears' case has strengthened.

Oil failed to rally Wednesday despite a government report indicating a draw in U.S. gasoline stocks, on concerns a slowing global economy will reduce global oil demand growth.

Oil closed down 59 cents to $118.58 per barrel. Further, oil also at one point in Wednesday's session fell to $117.25 per barrel, or to a level more than 20% below the July 11 record of $147.27. Technical analysis enthusiasts view a more than 20% price decline as a bearish signal -- a sign that the price of a stock / commodity / market is likely to trend lower.

In addition, oil bears could point to new oil community analysis to support their argument that oil prices are headed lower. Dennis Gartman, publisher of the Gartman Letter, an investor newsletter, told CNBC Wednesday he has closed his oil-long positions and is out of the oil trade entirely. Gartman believes oil could fall below $80 per barrel.

Is the oil 'bubble' bursting?

A drop substantially below $100 would suggest oil's move to near $150 was a bubble. Energy Trader Jim Dietz told BloggingStocks Wednesday he doesn't get caught up in those who try to structure the debate: he just watches oil demand statistics.