Treasury Secretary: Oil Prices May Drop with Changes in Venezuela

Washington, D.C. — Treasury Secretary Scott Bessent suggested on Thursday that oil prices could decrease if significant changes occur in Venezuela. Speaking with Laura Ingraham on Fox News, Bessent expressed his confidence in job growth for the upcoming year and discussed how peace deals may contribute to economic improvements.

"The peace deals—we are seeing a peace dividend from that. And I think there’s a very good chance that if something happens with Russia, Ukraine, if something happens down in Venezuela, that we could really see oil prices go down even more," Bessent said.

Bessent’s comments come as the U.S. increases military presence in the Caribbean, aiming to counter drug trafficking linked to Venezuela. He did not elaborate on what he meant by "something happens down in Venezuela," but his remarks imply potential actions that the administration might consider regarding the country.

The tension has been rising since the U.S. has reportedly carried out over 20 military strikes on suspected drug-carrying vessels in the region. This strategy highlights the administration’s focus on addressing narcoterrorism.

Poverty and political instability have long plagued Venezuela, making it a significant player in the global oil market, despite its recent economic struggles. Bessent emphasized that reduced oil and gasoline prices are essential for economic affordability, especially in relation to food costs.

"Oil and gasoline prices are down substantially under President Trump. And that is really the key to affordability, is lower energy. And energy goes into food prices," he said.

His confidence in a robust economic future is tied to the optimism regarding capital expenditures, with Bessent highlighting that historically, these investments lead to job creation."I am very confident about job growth and the momentum that we’ve got for next year," he added.

A Department of the Treasury response to his comments has not yet been released.