In hopes of taking advantage of oil prices over $70, it is reported that OPEC has slowly been pumping more oil. This isn't a real shock as many OPEC countries rely on oil as a main source of revenue, and are trying to make up for low oil prices earlier this year.
This is great news for U.S. consumers, regardless of where the oil is shipped. I say that because no matter what country receives the oil, it will add precious barrels to world inventories, which is well monitored by traders eager to profit off low inventory numbers, and may scare away some hoping for shortages in oil during a sustained economic recovery. (READ MORE!)
Recently, OPEC has increased output to the highest numbers in eleven months. During November, it is estimated that OPEC pumped 26.4 million barrels per day, a whopping 1.67 million barrels above the group's latest quota.
While U.S. crude oil inventories have dropped some 9.5% since their peak earlier in the year, they remain above the average, as I posted a few days ago.
Also- motorists in California should begin bracing for higher prices as refineries will soon begin major repair and maintenance work on facilities in the Bay area. This will likely cause prices around the Bay area to rise 10-30 cents higher than other areas in California as production in the area temporarily goes offline for work. This will not occur for a few weeks, but be mindful it will happen soon.