(click for a larger picture)
The Barrel reported that OPEC has reduced its output by 70,000 from October to November. Not good news for the US consumers who are already hurting.
“According to the Platts’ survey, OPEC cut its output just as demand is showing significant signs of growth around the world, pumping out 29.1 million b/d in November, That’s down 70,000 b/d from a month earlier, during the quarter where demand is the heaviest and the inventory draw the most significant.”
The contract spiked the day after the news was announced and reversed down. With the ever-so-slightly tightening supply (fundamentals) married with an uptrend (technicals), you have a set up for higher prices. Plus, you can always count on a spike in crude oil or heating oil when the first big wave of freezing temperatures hits the northeast.