US Treasury Secretary predicts oil market glut and collapse of OPEC

The global crude oil market could face a structural supply glut in the foreseeable future, potentially triggering the dissolution of the Organization of the Petroleum Exporting Countries (OPEC), U.S. Treasury Secretary Scott Bessent stated during an address at Southern Methodist University in Texas, Vesti.az reported citing TASS.

Bessent indicated that within one to two years, shifting dynamics—accelerated by developments between the United States and Venezuela—will leave the global energy market heavily oversupplied. He argued that an eventual conclusion to the Russia-Ukraine conflict and a de-escalation of hostilities in the Middle East would undercut current supply constraints and ultimately lead to the unraveling of OPEC.

Founded in 1960 by major producers to coordinate production policies and defend price floors, the petroleum cartel will face unprecedented structural strains as alternative flows expand and regional security crises subside, according to the Treasury chief.