U.S. President Donald Trump’s administration is currently eliminating the option of allocating oil futures contracts to the Treasury Department as government officials monitor fluctuations in energy prices amid the war with Iran.
Discussions within the administration included the possibility of the Treasury buying and selling in the futures market, Bloomberg reported on Friday from sources familiar with the matter, but the final assessment concluded that the Treasury’s ability to significantly influence markets remains “limited” and that inflation in daily volumes would reduce the influence of any single player.
Sources conveyed the administration’s reluctance to rely on “strategic reserves” at this time, given that they were significantly depleted during former President Joe Biden’s era. In addition to technical issues related to maintenance, the company took into account the fact that inventory has been reduced to about 60% of total production capacity.
President Donald Trump’s administration is currently eliminating the option of allocating Treasury money to trade oil futures contracts, as government officials monitor fluctuations in energy prices during the war with Iran.
Discussions within the administration included the possibility of Treasury intervening in futures market buying and selling, Bloomberg reported on Friday from sources familiar with the matter, but the final assessment concluded that the Treasury’s ability to significantly influence the market remained “limited” given ballooning daily trading volumes and diminishing influence of any single player.
Sources reported that the administration is hesitant to rely on the “strategic reserve” at this time, as it was significantly depleted during former President “Joe Biden’s” term in office. In addition to technical problems related to maintenance, inventory was reduced to approximately 60% of total production capacity.
