The Organization of Petroleum
Exporting Countries agreed Thursday not to cut crude oil production citing
pressure from the United States and uncertainty of how the nation might respond
to the Sept. 11 attacks. Meanwhile, the cost of diesel continues to decline
throughout the United States.
OPEC agreed during a
meeting in Vienna, Austria to leave production unchanged. The cartel has scheduled
a November meeting to consider adjusting output, but the cartel could face
similar issues then. The Bush administration has discouraged a production
cut because of the struggling U.S. economy and uncertainty about whether U.S.
retaliation will somehow disrupt oil supplies precludes OPEC from cutting
production to prop up oil prices.
Meanwhile, the price
of oil continues to fall. During previous price drops, OPEC would have cut
production to keep oil prices within a $22 to $28 a barrel price range. Currently,
the cartel can only watch prices dip.
"OPEC is caught
between a rock and a hard place," Raad Alkadiri, an analyst with Petroleum
Finance Co., a consulting firm in Washington, DC, told The Wall Street Journal.
"Demand is falling at the same time they have been robbed of the one
mechanism they had - to adjust supply."
The biggest drop in diesel
fuel prices Thursday from Wednesday was in Kansas where diesel fell more than
4 cents per gallon. Similarly, diesel dropped 3.8 cents in Connecticut, 3
cents in Wisconsin and 2.9 cents in Nebraska, according to Pro Miles Online.
Pro Miles releases Monday
through Friday the average retail fuel from more than 4,500 truckstops. Prices
are based on fuel credit transactions from each truckstop.