US won’t intervene in global oil market

The United States won’t do anything to try to stop the falling global oil prices, preferring instead to leave it to the market, a top diplomatic official said.

Amos Hochstein, the State Department’s top envoy for energy, told Bloomberg News that the oil market should decide whether prices remain low or increase, and the United States government should not play a role.

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“When people ask the question ‘what will the U.S. do?’ it’s really the market that’s going to have to decide what happens,” Hochstein told Bloomberg. “This is about a global market that is addressing the supply-demand curve.”

Hochstein said the United States does have tools at its disposal to intervene in oil markets, but it will avoid using them.

“We do have mechanisms to work with our partners around the world if something extreme happens, but that’s not where I think we are, and I think the markets so far can adjust themselves,” he said, according to Bloomberg.

Oil prices have dropped by more than half in the last year due to a glut in supply and dropping demand from major economies.

Hochstein said the harm to the United States is minimal from the falling prices, since its energy market is resilient and demand for alternative energy is strong.