U.S. crude rose nearly 2 percent Monday, recovering slightly after moving within a hair of 11-year lows, as record short interest led to technical covering on fears that the market declined too quickly. Early in the day, both Brent and U.S. crude futures fell by as much as 4 percent to their lowest levels since the start of the 2008 financial crisis, before paring losses on some short covering. At the close, U.S. crude was up 69 cents, or 1.94 percent, to $36.31 a barrel.

John Kilduff, partner at Again Capital, said the market might have found a bottom. "We had gone so far so fast that it was just time," he said. However, Kilduff said he expects crude to near lows again in late February when the Spring refinery maintenance season gets under way.

At Monday's close, Brent futures were down 0.45 percent, at $37.76 a barrel.

Earlier in the session, Brent traded just 13 cents above the $36.20 low set in December 2008. Below that level, Brent would be at its lowest since July 2004 — a year when oil was rebounding from single-digits lows hit during the 1998 financial crisis and when talk of a commodities super-cycle was just beginning.

"If you look at a 10-year chart, I think what you'll see is going back to 2008, that December low of $32.40, that's going to be the next big level to watch here," Mike Harris, president of Campbell & Co., told CNBC on Monday. "If we get through there, then you know the $30 psychological level will be the next big level for the market to breach."

