Bessent: US Treasury Department has no authority to intervene in oil markets

(Patria) - US Treasury Secretary Scott Bessent says the administration in Washington has no plans to intervene in financial markets and "has no authority to do so even if it wanted to".

- That rumor is circulating in the market. When there are big dynamic price changes, that always happens. We have not done that - Bessent said in a statement to CNBC yesterday.

His statement referred to media reports that the Treasury Department or another US government body might intervene to try to lower oil prices.

Asked if such a measure was being considered, Bessent replied that he was not sure "under what authority or sponsorship".

The American TV channel states that, although presidents, including Donald Trump, have approved the release or exchange of credits from the Strategic Petroleum Reserve in times of stress in the energy sector, entering futures markets or using other mechanisms would be unprecedented.

The idea would be for the Treasury Department to intervene in oil futures markets - essentially trading against rising prices. Such a move would likely be controversial as it would involve targeting financial markets rather than the physical supply of oil.

Oil prices have stabilized, with US crude trading 1.9 percent lower at $96.86 a barrel, while international benchmark Brent crude rose to $103.15.