Oil prices set to decline soon, Bessent gives timeline
Scott Bessent (photo: Getty Images)
US Treasury Secretary Scott Bessent said that oil prices are expected to fall by the end of 2026, with the decline potentially beginning very soon.
According to the minister, oil prices could start declining within the next 3 to 9 months. He said the trend would be supported by the United Arab Emirates' exit from OPEC, after which the UAE is likely to increase production volumes.
"The UAE has decided that OPEC is not for them. Most monopolies eventually collapse under their own weight. This gives me a lot of optimism that oil prices on the other side of this conflict are going to be much lower than they were at the beginning of the year or at any point in 2025. We can see in the futures market that the oil prices are already lower three months, six months, nine months out," Bessent said.
Another factor behind the forecast, he added, is the expectation that oil currently stuck in the Middle East due to the blockade of the Strait of Hormuz will soon reach the market.
"There are hundreds of oil tankers waiting in the Gulf to come out. The US is only blockating Iranian ships. And we will see, I would be surprised if we don't see more ships coming out," the minister noted.
Oil prices, production
On April 30, global oil prices surged to a four-year high, exceeding $122 per barrel.
The media also reported that OPEC+ countries agreed to a modest increase in oil production quotas for June. Output will be raised by 188,000 barrels per day. The decision was made following the UAE's withdrawal from the organization.
