Oil glut is a 'snapshot in time': Energy Secretary Rick Perry

Oil prices fell on Friday and were headed for a third straight week of losses after Saudi Arabia warned that oversupply could become an issue in the fourth quarter. According to United States Energy Secretary Rick Perry, it’s a reflection of the volatile state of oil.

“It’s a snapshot in time,” Perry said during an exclusive interview with FOX Business’ Maria Bartiromo on Friday. “And we know that stable supplies is really the most important issue to us so we don’t get these spikes and ups and downs. So right now there’s a bit more than what the market is using but that can vanish in a hurry.”

Even though the world market needs Saudi Arabian oil, he said, they are now more reliant on the U.S.

“The United States is now the No. 1 oil and gas producing country in the world. By 2020 we will be a net oil exporter,” he said. “The world market is going to need this energy – all kinds of energy.”

President Trump is focused on building a pipeline infrastructure in the Permian Basin, which is the third-largest oil field in the world, he said, to keep the oil supply up.

“He understands that you’ve got to get this to market and pipelines are one of the key issues there,” said Perry.

U.S. sanctions against Iran will go into effect next week but in Perry’s opinion it won’t have a big impact on the oil market.

Perry also added that he’s optimistic that they would send the “appropriate message to Iran.”