by Calculated Risk on 6/10/2011 06:45:00 PM

Professor Jim Hamilton nailed it again when he wrote that the OPEC announcement was "largely irrelevant".

From the NY Times: Saudi Arabia Defies OPEC and Raises Oil Output

The Saudi newspaper Al-Hayat reported on Friday that oil officials there had decided to increase production to 10 million barrels a day in July, from 9.3 million barrels ...

Of course Hamilton also wrote that "if you're interested in what OPEC members really plan to produce, my view is that actions speak louder than words" - so we need to see if these extra barrels from Saudi Arabia are actually produced.

Brent crude futures fell a little to $118.78 per barrel (WTI futures are back under $100).

Meanwhile gasoline prices are still falling, and are now down about 25 cents per gallon from the recent peak nationally (down over 33 cents per gallon where I live). And it looks like gasoline prices will probably fall some more over the next few weeks ...

Orange County Historical Gas Price Charts Provided by GasBuddy.com