Rising Prices Fuel Gas Clash

If OPEC members stick to their quotas, U.S. crude could spike to $40 a barrel “within a week or two,” said Carl Larry, an analyst at ABN Amro in New York.
(CBS/AP) OPEC’s decision to cut production was expected on Thursday to raise oil prices and fuel the political battle over how to reduce the cost of filling American gas tanks.

The Organization of Petroleum Exporting Countries hopes the 4 percent cut will prevent a price drop this spring, when the global demand for oil usually slips to a seasonal low.

Some analysts, however, said the cut could soon push crude prices above the psychologically important threshold of $40 per barrel and worsen the pain for U.S. motorists.

If OPEC members stick to their quotas, U.S. crude could spike to $40 a barrel “within a week or two,” said Carl Larry, an analyst at ABN Amro in New York.

U.S. gasoline prices