US Treasury’s Bessent urges World Bank to back upstream oil and gas projects

Photo: Life Of Pix / Pexels U.S. Treasury Secretary Scott Bessent has called on the World Bank to reconsider its stance on financing upstream gas and oil projects. Bessent argues that the Bank should support “all affordable and reliable sources of energy,” which includes upstream oil and gas. This statement comes after the World Bank recently dropped its 45% climate-finance lending target but maintained its 2019 policy to halt financing for upstream oil and gas projects. The Bank’s policy has only permitted limited financing for natural gas in countries with urgent energy needs and no immediate renewable alternatives. This development may have implications for markets assessing the potential impact on oil prices and related political outcomes. The call for increased financing in upstream oil and gas could influence oil prices, which in turn might affect political dynamics, especially in the context of U.S. Senate races. Market pricing suggests a possible positive influence on scenarios where oil prices support Republican candidates in the Senate elections. Key Takeaways Bessent’s call for the World Bank to finance upstream oil and gas appears to suggest potential support for oil pr...