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No oil output cut means more volatility: Goldman's Currie

Oil prices fell as much as 5 percent Tuesday after Saudi Oil Minister Ali Al-Naimi said that producers may meet in March on an output freeze, but that crude production cuts will not happen.

Saudi Arabia, Russia, Qatar and Venezuela proposed last week a production freeze at January levels in response to the global glut and sustained low prices of crude.

Still, keeping production where it is will encourage continued volatility in oil prices, Jeffrey Currie, global head of commodities research at Goldman Sachs, told CNBC's "Fast Money Halftime Report" on Tuesday.

"I think what we're seeing in terms of price action today is exactly what we are going to be seeing going forward," said Currie. "It's going to be a trendless market with volatility between $20 and $40 a barrel."

Oil prices had surged on the prospect of OPEC and noncartel members capping production, but the rally stalled on Tuesday on doubts that a freeze would significantly reduce oversupply.

On Monday, OPEC Secretary General Abdalla Salem El-Badri told CNBC that oil producers are still "feeling the water" over a possible deal to freeze production, and that it is "wait and see" as to whether it leads to any other type of accord.

Naimi said there is more to unite energy industry participants than to divide them, but lack of consensus led OPEC to embark on a policy that has sent prices spiraling.

Keeping output at record levels also does not help stabilize oil prices, Currie added.

"If you look at Russia, the numbers we have for their January production is the highest they will get in all of 2016 to begin with," Currie said. "In terms of thinking about this 'freeze,' it doesn't do anything to the fundamentals."

— CNBC's Tom DiChristopher contributed to this report.