Treasury Secretary Clarifies No Plans to Intervene in Oil Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Source: CNBC
- Treasury's Clear Stance: Treasury Secretary Scott Bessent stated in a CNBC interview that the department has no plans to intervene in financial markets and may lack the authority to do so, clarifying that rumors of government intervention in oil prices are unfounded.
- Market Reaction Stabilizes: Following Bessent's remarks, U.S. crude oil prices fell by 1.9% to $96.86 per barrel, while international benchmark Brent crude edged up to $103.15, indicating a reduction in market expectations for government intervention.
- Discussion on Intervention Mechanisms: Bessent noted that while past presidents have authorized the release of the Strategic Petroleum Reserve during energy crises, intervening in futures markets would be unprecedented and likely controversial, raising concerns about targeting financial markets instead of physical oil supply.
- Unclear Authority Limits: When asked if intervention is under consideration, Bessent expressed uncertainty regarding the authority or auspices under which such actions could be taken, highlighting the ambiguity surrounding the Treasury's legal and policy boundaries for intervention.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 156.120
Low
114.00
Averages
132.17
High
158.00
Current: 156.120
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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