WTI was last trading around $44, while Brent was last trading near $48. Each hit six-year lows of $37.75 and $42.23, respectively, last month.
US Output Declining, Inventories Rising
Crude's rebound off the lows comes on the back of data from the EIA that show that U.S. production may be rolling over. Output in the country dipped to 9.22 million barrels per day last week, down 120,000 barrels per day from the week before and 392,000 below the 40-year high set in June.
At least based on this data, it seems that the long-awaited decline in U.S. output has arrived. That's a first step and necessary ingredient to rebalancing the severely oversupplied market.