April 2, 1986
The administration supports a market-oriented policy on world oil prices. There has been no change in administration policy or viewpoint on the declining oil prices. We believe that the way to achieve price stability is to let the free market work. While we're concerned with the effects of falling prices on oil-producing sectors of the U.S. economy, the net effect for American consumers and the American economy will be positive.
When the Vice President meets with King Fahd in Saudi Arabia this Sunday, he will emphasize the U.S. viewpoint that market forces should establish world oil price levels. As the Vice President said yesterday, we're not going there on a price-setting mission when we ourselves favor market forces.
Note: Larry M. Speakes read the statement to reporters at 10:33 a.m. in the Cantina Room at the Sheraton Hotel in Santa Barbara, CA.