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Treasury Secretary Scott Bessent pushed back on a CNBC reporter’s characterization of global oil shortages Monday during an appearance on CNBC’s “Squawk Box,” arguing that some media coverage is misrepresenting the size of the supply gap created by disruptions in the Persian Gulf.
Speaking with CNBC anchor Brian Sullivan, Bessent disputed the suggestion that the release of Russian oil shipments represented only a minimal contribution to global supply.
“No, no, but that’s bad framing,” Bessent said after Sullivan described the oil as equivalent to roughly one and a half days of global supply. “Good framing is that there was about 20 million a day coming out of the Gulf.”
The exchange came as global energy markets react to escalating tensions involving Iran and disruptions near the Strait of Hormuz, one of the world’s most critical shipping routes for oil and natural gas.
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“That’s a lot of oil,” Bessent said.
He argued that broader market dynamics show more available supply than some commentators suggest. Bessent noted that approximately 1.5 million barrels per day of Gulf exports come from Iranian oil, while other producers such as Saudi Arabia and the United Arab Emirates redirected shipments through alternative routes.
“So we are in a deficit somewhere between 10 and 14,” Bessent said, referring to his estimate of the current global supply shortfall.
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Despite the deficit, Bessent said additional supply buffers exist, including Iranian oil currently stored in tankers and reserves held by major producers.
“If you think about the Russian oil, that is somewhere between nine to 11 days, 12 days of supply without the market moving,” he noted.
Bessent also addressed reports about a possible delay in a planned meeting between President Donald Trump and Chinese President Xi Jinping, saying any change would be related to logistics rather than disputes over security in the Strait of Hormuz.
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“If the meeting for some reason is rescheduled, it would be because of logistics,” Bessent said. “The president wants to remain in D.C. to coordinate the war effort.”
The treasury secretary said talks with the Chinese trade delegation were constructive and predicated global oil prices could eventually fall once the conflict subsidies and markets stabilize.
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“I think probably much lower,” Bessent said when asked whether crude could return to around $80 per barrel in the coming months.
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