ALGERIA OPEC's surprise move could result in higher gas prices, analysts say

ALGIERS, Algeria (AP) -- OPEC's unexpected, two-pronged strategy for stabilizing prices -- curbing excess production of crude and trimming its members' output quotas by 1 million barrels a day -- could end up costing consumers more to fill up their cars and heat their homes, analysts say.
The Organization of Petroleum Exporting Countries agreed Tuesday to reduce output to try to keep oil prices stable when warmer weather erodes demand in the United States and other major importing countries. The combined cuts, if effective, would squeeze OPEC's actual production by as much as 10 percent, or 2.5 million barrels a day.
"What this means is that consumers are going to carry on paying loads of money for their gasoline for quite some time," said Jan Stuart of FIMAT USA, a New York brokerage.
Patrick Ward, an analyst at ABN/Amro in New York, estimated that OPEC's decision could add 5 to 10 cents a gallon to the average U.S. retail price for unleaded gasoline.
OPEC has often urged its members to comply better with their agreed quotas, but its decision to make an additional cut, effective April 1, in its official target of 24.5 million barrels surprised energy markets.