Market Overview

John Hoffmeister: President Has the Power to Lower Oil Prices


John Hoffmeister believes the President of the United States would have the power to meaningfully and sustainably affect oil prices if the will is there to do so. He spoke this morning to CNBC's Squawk Box.

"I think that, if the President showed leadership, and said to the american people--and therefore to the whole world--that we used to produce 10 million barrels of oil per day in this country, we are down to about 6, that we are going back to 10, and we have the plans, we have the resources, we have the companies, we have the permitting authorities to go back to 10 million barrels a day," says the founder of Citizens for Affordable Energy, "that would add such a relief to the world."

"Even though we would not see the oil for years, we would see an immediate and sustained lowering of the oil prices," Hoffmeister notes, "because the world's largest consuming economy is saying to that world out there that we would come to our own rescue, fix our own problem, because we know how to do that."

"It would take a lot of the pressure," continues the former Shell Oil USA president. "Particularly the long pressures, and I think that could affect the short-term trades."

Oil futures currently are trading at $105 a barrel.

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