OPEC decision opens door for higher fuel prices

(March 15, 2002) — Get ready for higher fuel prices. The Organization of Petroleum Exporting Countries has decided to leave crude oil production unchanged in an effort to prop up prices.

While the decision comes as a relief in the wake of earlier talk the cartel was looking at another production cut, with recent price increases at the pumps there are new concerns fuel prices could soon head higher.

Oil ministers from Arab oil-producing nations are shooting for crude prices in the $22-$28 a barrel range, which they have just entered, due mainly to increased demand as the U.S. economy starts to recover and fears the country soon may engage in a military campaign against Iraq.

In the past few weeks diesel prices have risen to their highest level so far this year, but they are still running well behind prices from a year ago. Crude oil prices have done the same.

The announcement reinforces a 2002 fuel outlook TodayÕs trucking reported in December. The report, published by Oshawa, Ont.-based En-Pro International predicted prices would hold relatively steady until this spring, and start to climb again near the end of summer or fall.