US favoring other ways cut to oil prices over futures: Burgum

The Trump administration is prioritizing regulatory adjustments and market interventions over direct Treasury Department involvement in oil futures trading to address surging energy prices, according to Interior Secretary Doug Burgum. While officials have explored having the Treasury Department buy or sell energy futures to stabilize markets, they acknowledge the agency's limited capacity to influence a market with "ballooned" daily activity. Burgum emphasized that "everything is being considered," including immediate measures like easing fuel-blending requirements and longer-term strategies such as accelerating domestic oil production.

A key focus remains insulating the U.S. from prolonged price shocks caused by disrupted shipments through the Strait of Hormuz, where traffic remains at a standstill amid ongoing conflict. The administration has offered insurance guarantees and contemplated naval escorts for tankers transiting the region, though these efforts have yet to restore normal flow. Officials also remain hesitant to tap the Strategic Petroleum Reserve (SPR), which is now only 60% full after heavy use under the previous administration, despite its potential to signal market stability.

While Burgum noted the administration is "thinking" of alternative actions, analysts caution that without a swift resolution to the geopolitical tensions driving the crisis, the oil market's "massive supply shortage" will persist. The administration's reluctance to employ aggressive measures, such as price controls or export restrictions, underscores the narrow range of tools available to counter the 20% global oil supply disruption. For now, stabilizing energy prices hinges on de-escalating the conflict—a challenge that complicates both economic and political priorities ahead of the November midterms.