Bessent says Treasury is not intervening in oil commodities markets and has no authority to do so
Treasury Secretary Scott Bessent said Monday that the administration has no plans to intervene in financial markets and may not have the authority to do so even if it wanted to.
In an interview with CNBC, Bessent addressed rumors that the Treasury Department or another arm of the government might step in to lower oil prices.
While presidents, including President Donald Trump, have allowed the release or swap of credits from the Strategic Petroleum Reserve during times of stress in the energy sector, stepping into futures markets or using other mechanisms would be unprecedented.
The idea was for the Treasury to intervene in oil futures markets, essentially trading against rising prices. Such a move would likely be controversial because it would require targeting financial markets rather than physical oil supplies.
“That rumor is out there,” Bessent told CNBC’s Brian Sullivan during his “Squawk Box” interview. “This happens all the time when there are large dynamic price movements. We didn’t do that.”
When asked if this was something that was being considered, Bessent said, “I’m not sure under what authority or under what auspices.”
Oil prices calmed on Monday; U.S. crude fell 1.9% to $96.86 a barrel, and international benchmark Brent crude rose to $103.15.
