The long-awaited decline in U.S. oil output has begun, data show, but many investors and analysts are still waiting for prices to stage a sustained recovery.
U.S. government data confirmed in late August that the nation’s oil output peaked in April and has fallen steadily since.
For the same period OPEK's output rose, also rates of oil extraction in Brazil and Russia increased in recent months.
Global inventories remain high, meaning that the market could remain in a glut even if demand begins to outstrip supply.
But big investors such as hedge funds have added some bullish bets since early August, according to Commodity Futures Trading Commission data. The number of bearish oil wagers has decreased, signaling a belief that oil bottomed when it hit a six-year low in August.
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