Traders are saying the decline in oil prices is over.  According to John Kilduff at Again Capital, who spoke to Bloomberg last week, “The falling rig count and the reduction we’re starting to see in output shows that the bottom has in fact been installed … A lot of people are throwing in the towel.”

Last week, oil prices rose for the sixth straight week, and West Texas Intermediate crude oil was trading near $57 a barrel Sunday night, up from its low of $43 hit back in March.

Source: Bloomberg Energy

Data from the Energy Information Administration showed that crude oil inventories again rose to at least an 80-year high. The US has over 480 million barrels of oil in its inventory. Oil prices, however, haven’t reacted to this data much in recent weeks. Data from oil driller Baker Hughes released Friday showed that last week the number of US oil rigs in use fell to 734, the lowest total since Oct 2010.

us-crude-oil-stock

Source: BusinessInsider.com

And while oil production hasn’t yet started to really tail off, there are signs the market may be headed towards the ending of a phase in which it was flooded with supply.