Editorial: Looking for Assurance

Last’s week violence in the Middle East, and the resultant turmoil in the oil futures markets, is a graphic reminder of how little control we have over many of the elements crucial to the success of our businesses.

Just when it appeared that oil prices were headed down into a more reasonable price range and perhaps into a period of stable supply, terrorist attacks against the United States and Israel and civil unrest in the region turned the oil market on its head.

	Related Stories
	Oil Prices Down at Midday; Calming Expected in Middle East (Oct. 13) Oil Prices Surge on Mideast Violence (Oct. 12) U.S. Diesel Fuel Prices Continue On Downward Trend (Oct. 11) House Vote Would Spread Fuel Surcharges to More Truckers (Oct. 11) Latest national diesel prices
		More coverage on Truckline

As of press time, petroleum futures prices were around $36, nearly 20% above the levels of a week ago, although still below the 10-year highs of almost $38 that futures briefly approached Oct. 12.

In the diesel price information released by the Energy Information Agency early last week, before the unrest, the national average fell 1.1 cents per gallon to $1.614. That was the second consecutive week of falling prices.

But the rising futures prices portend steep increases at the pump in coming weeks, once again raising the specter of $2 diesel and inadequate supplies of both diesel and home heating oil, a very similar product.

On top of these events, a familiar villain, Iraq’s Saddam Hussein, has again popped onto the scene, threatening to withhold his country’s oil from world markets in order to disrupt supplies and send prices soaring.

It is time for the oil-producing nations — if they truly desire worldwide economic stability — to step forward to resolve the petroleum crisis.

The oil producers need to calm the petroleum-buying community and assure us that stable prices at a reasonable level will prevail, no matter what forces try to upset the situation.

At the same time, our allies in Europe need to shoulder more of the burden of combating high energy prices.

The Europeans have thus far failed to tap their own strategic petroleum reserves in an effort to nudge prices down. They failed to act even after President Clinton opened up the U.S. reserve to the tune of 30 million barrels of petroleum.

Worse still, some U.S. distillate is being exported to Europe for use as home heating oil, simply because prices are higher there.

The administration and Congress need to ensure that the positive impact of tapping the U.S. reserve isn’t lost to greedy oil traders or refiners who divert critical supplies to other nations.