Expert Warns of Unprecedented U.S. Treasury Intervention in Oil Market

John Kilduff, a partner at Again Capital, has stated that the U.S. Treasury's intervention in the oil market would be unprecedented. According to Jin10, Kilduff compared this potential action to the use of Treasury futures during the global financial crisis, noting that the comparison is not entirely appropriate. The U.S. Treasury naturally holds a position in the bond market, and in this scenario, the aim would be to lower futures prices. This would theoretically require selling a large number of futures contracts in the open market. At this point in time, engaging in naked short selling would necessitate substantial funds to support positions, address margin calls, and prevent further severe supply disruptions. However, the Treasury does possess unlimited financial resources.