Has Crude Oil Finally Made A Long-Term Bottom?

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

October Crude Oil futures were trading sharply higher by $2.16 at $46.76 in Wednesday's session. Off the initial EIA data release, it spiked lower to $45.42 but quickly reversed course.

Based on the recent data, some experts expect excess inventories to clear in 2016, which may pave the way for marginal costs to come back in-line.

After tight trading ranges on Monday and Tuesday, the contract has made strong move to the upside. So far, it has reached $47.35 before pulling back to the $47 area. That level is just above its September 4 high ($47.23), but well below its September 3 high ($48.42).

Since making its multi-year low on August 24 ($37.75), Crude came close to $50 only one time, when the rebound off the lows peaked at $49.33 on August 31.