Rephrasing the question,we can say that the question asks if the given statements are sufficient to prove that "the distance between x and y is greater than that between x and z or not".
Statement I
The absolute value of y is greater than that of z.No information about x.Hence insufficient.
e.g.For y=-5, z=-1, x=-2, |x - y|=3 , |x-z|=1 gives |x - y|>|x-z|
But for y=-5,z=-1,x=-4 , |x - y|=1 , |x-z|=3 gives |x - y|<|x-z|
Statement II
z<0.Again nothing about x.Insufficient.In above examples, z<0
Combining both we again can't say anything.Above two examples satisfying both conditions yet inconclusive.
Hence,Option E