Crude prices rebound as traders buy the dip

Crude prices rebounded Monday as traders started to buy after the prices have declined significantly in the past week.

Crude prices got some support as dollar depreciated against most other currencies after last week's rally. A weaker greenback makes the dollar-priced crude less expensive and more attractive for buyers holding other currencies.

The crude prices plummeted last week as the market expected that global supply surpassed demand. Both U.S. and Brent crude prices lost more than 4 percent last week.

Technology and high prices are opening up new oil resources from North America. U.S. domestic crude production rose to the highest level since March 1986, according to Energy Information Administration.

The increasing crude output from the Organization of Petroleum Exporting Countries (OPEC) also weighs on crude prices. A market survey showed that OPEC September output rose to the highest level since August 2013.

Saudi Arabia cut its crude benchmark prices to Asian customers last Wednesday. Analysts regarded it as a battle for market share, signaling that Saudi Arabia won't lower its crude output in the future.

Light, sweet crude for November delivery moved up 60 cents to settle at 90.34 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery gained 48 cents to close at 92.79 dollars a barrel.