(Bloomberg) - Oil advanced to a three-month high in New York as traders continued to assess last week’s change in OPEC policy.

Futures rose 1.2 percent after climbing 8.5 percent last week. While OPEC outlined an accord to curb output by as much as 750,000 barrels a day, Libyan production rose and will advance further this month, according to an official of the state oil company. Independent oil companies are using the rally that followed the agreement to hedge their price risk for next year, banks and consultants said. Rigs targeting crude in the U.S. rose to the highest level since February, Baker Hughes Inc. said on its website Friday.

Oil capped the biggest monthly gain since April after the Organization of Petroleum Exporting Countries agreed to trim supply for the first time in eight years. While quotas will be decided at the group’s official meeting in Vienna on Nov. 30, Nigeria and Iran have said they are exempt and Iraq has said it doesn’t accept OPEC’s estimates of its production levels. Russia boosted output last month to a post-Soviet record.

http://www.downstreamtoday.com/news/article.aspx?a_id=53736

Things are starting to get interesting. Higher oil prices will give Central Banks the inflation they have been looking for and soon the Fed will start to increase rate.

Life is good.