New Delhi: Will we ever witness normalcy in the international crude oil prices? This one question is circulating among the tables of oil marketing companies, policymakers, and investors around the world.
Now, US Treasury Secretary Scott Bessent has, to some extent, tried to answer the question around the stability of crude oil prices in the international oil market.
Speaking to American media, US Treasury Secretary said that global oil prices could witness a sharp decline in the coming weeks, citing easing supply concerns and changing dynamics within the Gulf energy market.
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Speaking on the recent developments in the global energy sector, Bessent noted that oil prices had already fallen by nearly 10 per cent in May.
He added that around 2,000 ships are currently waiting to exit the Gulf region, indicating that a large volume of oil supply could soon enter the market once tensions linked to the West Asia conflict ease.
The US Treasury Secretary also referred to reports that the United Arab Emirates (UAE) has left the Organization of the Petroleum Exporting Countries (OPEC), suggesting that the move could further impact the oil supply balance and push prices lower.
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“Oil prices are down about 10 % in May. Almost 2,000 ships are waiting to leave the Gulf, and I think the oil market will be very well supplied on the other side of this (West Asia conflict), and we could see prices come down very quickly. We saw the UAE leave OPEC. So I would expect on the other side of this that gasoline prices will follow,” Bessent said.
Bessent expressed optimism that gasoline prices would also follow the downward trend if crude oil prices continue to soften in the global market.
The remarks come at a time when investors and energy markets are closely monitoring geopolitical tensions in West Asia and their potential impact on global crude supplies and fuel prices.
Current Prices
On Friday, the WTI crude futures fell toward $88 per barrel and remained on track for a sharp monthly loss after the media indicated that the US and Iran had tentatively agreed to extend their ceasefire by 60 days and possibly permit unrestricted shipping through the Strait of Hormuz.
Ends.
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