Anti-OPEC bill could drive up long-term oil prices – US Energy Sec

US Energy Secretary Rick Perry said Thursday that anti-OPEC legislation getting renewed attention in Congress could have the unintended effect of spiking oil prices in the long term, the strongest comments against the measure on which the Trump administration has otherwise remained silent.

“I think we need to be really careful before we pass legislation that may have an impact that goes way past its intended consequence,” Perry said during a press conference at the Department of Energy headquarters.

Perry said the global oil market still needs some price management.

“I’m for stable pricing which is directly related to supply,” he said. “If you remove that, and there is no coordination of supply to the market, you could have a massive amount of energy supply come into the marketplace and impact producers — impact producers to the point of losing those individuals over the period of time because of the economics. And then a spike in prices that would make anything we’ve seen historically pale [in comparison].”

On concerns that the coming International Maritime Organization sulfur cap could boost US fuel prices later this year, Perry said Trump is always concerned about oil prices.

“I think I can speak for the president without having to pick up the phone and ask him — he’s always concerned about spikes in prices,” Perry said. “He may have tweeted about it already this morning.”

Perry added that the goal of US energy policy is stable prices, which are good for the world’s markets.

“A stable, level… market is our goal, recognizing we’re going to have some blips and ups and downs,” he said.

Source: Platts