Abraham Says Markets Should Drive Prices

Published March 12th, 2001 - 02:00 GMT

U.S. Energy Secretary Spencer Abraham on March 8th said that Washington preferred to let markets determine oil prices and would not engage in public discussions over pricing levels.  


Abraham said that: “I believe the market should drive these things, and that’s the American position.” Signaling a welcome departure from his outspoken predecessor, Bill Richardson, Abraham indicated that the new administration would opt for quiet diplomacy with OPEC.  


He also stressed that the U.S. did not have a target oil price, saying that: “Our position is not to pick a price … our position is to encourage markets to be allowed to work.”  


Abraham added that: “At the same time, nobody from any perspective wants to have such unpredictability in markets or in prices that it skews things in a way that can hurt our economy.”  


Abraham’s comments came on the sidelines of the Fifth Hemispheric Energy Conference in Mexico hosted by Mexican Oil Minister Ernesto Martens, with Venezuelan Oil Minister Alvaro Silva also in attendance.  


The U.S. energy secretary said that his visit was intended to highlight the increasing importance of Latin America for the U.S. as an energy ally and trading partner.  


Abraham told the ministers in attendance that they should work together towards developing a long-term energy strategy for the continent. 



© 2001 Mena Report (www.menareport.com)

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