Uche Cecil Izuora
The United States of America (USA) is spreading hope of recovery of oil market denouncing fears of possible shortfalls in supply.
The U.S. Treasury Secretary Scott Bessent said on Wednesday that crude oil markets are well supplied amid the U.S.-Israeli war in Iran, and that the U.S. plans to make a series of additional announcements on the issue.
“The crude markets are very well supplied. There are hundreds of millions of barrels on the water away from the Gulf. But more importantly, we have a series of announcements that we’re going to be making,” Bessent said in an interview with CNBC.
Oil prices rose about 1 per cent on Wednesday as U.S.-Israeli strikes on Iran disrupted Middle East supplies, but the pace of gains slowed from past sessions after President Donald Trump suggested the U.S. Navy could escort vessels through the Strait of Hormuz.
Trump also said on Tuesday that he had ordered the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf.
“So, U.S. government is going to step in, and when it is appropriate, and should it be needed, the U.S. Navy will provide safe passage through the straits for the oil tankers,” Bessent said.