OPEC announced late last week that they were planning on cutting oil production by 1.2 million barrels per day to keep costs of crude at about $60 per barrel. This cut, according to the National Ethanol Vehicle Coalition, is designed to raise the cost of gasoline while keeping it low enough to be more attractive than alternative fuel prices.
“It’s unfortunate that OPEC feels they can control the vision of this country and the destiny relative to alternative fuels,” exclaimed Curtis Donaldson, Chairman of the National Ethanol Vehicle Coalition.
OPEC expects to keep the price of gasoline at about $2.25 per gallon. The price is high enough for OPEC to invest in future production capacity but low enough to allow economic growth and deter a flood of alternative fuels.
U.S. oil prices set a record high in July of this year topping at $78.40 a barrel and averaging record high fuel costs. Alternative fuel pricing, including E85.
“OPEC feels that they can manage the price of gasoline to a point where increasing the production of E85 and providing it at more locations across the country will become less attractive. It will be disappointing if we allow this to happen when everyone knows, now more than ever, we need more energy independence,” added Donaldson.
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