If xyz < 0, then at least one of x, y or z must be negative. Notice that means that the smallest of the three numbers is certainly negative, because negative numbers are always smaller than positive numbers.
Statement 1 tells us x < y, but maybe they're both positive and z is negative. Statement 2 tells us x < z, but maybe they're both positive and y is negative. But using both statements, we know x is the smallest of the three numbers, and we know the smallest of the three numbers must be negative, so the answer is C.
For online GMAT math tutoring, or to buy my higher-level Quant books and problem sets, contact me at ianstewartgmat at gmail.com
ianstewartgmat.com