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US State Department Special Envoy and Coordinator for International Energy Affairs Amos Hochstein said that the United States doubts that freezing oil production would stabilize the current oil market situation.

US State Department ‘Sceptical’ of Idea to Freeze Oil Production

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US State Department Special Envoy and Coordinator for International Energy Affairs Amos Hochstein said that the United States doubts that freezing oil production would stabilize the current oil market situation.

HOUSTON (Sputnik) – The United States doubts that freezing oil production would stabilize the current oil market situation, US State Department Special Envoy and Coordinator for International Energy Affairs Amos Hochstein told Sputnik on the sidelines of the IHS CERAweek conference in Houston.

"I am highly sceptical of this idea of the freeze. I think the Iranians today said that they would not go along with it, so I think that idea is gone away," Hochstein said Tuesday.

“I think that the oil market is going through a transformation, not only that we are in a down period of price, but we are in a transformative era where the swing producing capacity is now the actual market, price reactive, market driven,” Hochstein said Tuesday.

"I am willing to have a conversation with anyone, and have discussions with anyone. But at the end of the day, where we are in the oil markets and the oil and gas markets is that obviously we have seen an 80 percent reduction in price, we are volatile. But the market is the right place for decisions to be made and to react to price," Hochstein commented.

“Decisions are made by multiple companies, not by governments, not by cartels, not by single individual companies. That era I think is over for now,” Hochstein added.

Amos Hochstein also noted that the governments should not get involved in decisions on oil output or exports.

"We have conversations with all our friends around the world, oil producing countries and oil consuming countries. But at the end of the day we do not believe that the government should interfere and decide artificially how much should be produced and how much should be exports," Hochstein stated Tuesday.

"The market is the right place for decisions to be made and to react to price," Hochstein added.

 

 

Related:
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Oil, freeze, United States
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  • jas
    "The market is the right place for decisions to be made and to react to price," Hochstein added.
    --
    These people are chronic liars.
  • cast235
    Ain't U.S doing the exact thing he saying at the end? Creating shale and then claiming the world is oversupplied, because is PILING in U.S?

    But even IF that was the case, the IDEA of reduce production with demand is the very old formula basics. However IF any country just fill tankers, and the oil accumulates, the price is highly reduced.
    FREEZE on itself may not do the trick right out.

    Having giant reserves, national and for export is wise. Population is set to grow. Unless new tech is found cheaper than oil, the raise will happen anyways.
    For Russia this is a BIG lesson. Produce your own tech and civilian products of ALL kinds.
    Produce infomercial's first for the participating countries of CIS EEU, then to nations attempting to get free trade... Which is not a very good idea, when the trade goes into the gov budget. Best to lower by price. Maybe 3%, one quarter, then if it foes up, raise to 4%...

    And NO to French deal on changing any name of foods, spirits, so they can dominate the markets with the real name.. Retake back deal on remaining of Bourbon etc. This is RIDICULOUS..
    6 year old kids would had say NO.
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