Iran: U.S. pressure is making the global oil market fragile

Iran

Iran’s oil minister said on Sunday that U.S. pressure on the global oil market have made it fragile. In detail, he attributed this to recent sanctions on Iran and Venezuela and tensions in Libya are affecting the supply-demand balance.

Throughout the year, oil prices have risen more than 30 percent this year. Overall, analysts agree that the hike stems from the supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and its allies; as well as U.S. sanctions on Iran and Venezuela, plus escalating conflict in Libya.

“Oil prices are increasing every day. That shows the market is worried,” Bijan Zanganeh was quoted as saying by Tasnim news agency.

According to Iran, Venezuela, Libya, Russia, and the U.S. are making the market fragile

“Venezuela is in trouble. Russia is also under sanctions. Libya is in turmoil. Part of U.S. oil production has stopped. These show the supply-demand balance is very fragile,” the Iranian official said.

He estimates that if the U.S. decides to increase pressures on Iran, the fragility will increase in an unpredictable way.

Zanganeh said one of the consequences of pressure on Iran was a rise in fuel prices in the United States.

“Mr. Trump should choose whether to add more pressure on Iran or keep fuel prices low at gas stations in America,” Zanganeh was quoted as saying.

The U.S. reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between it and six world powers. Additionally, it demanded that consumers of Iranian oil and gas would cut, and even halt, their energy trade deals with the country’s government.

Iran seeking oil pact with Iraq

On April 7, minister Zanganeh announced that Iran made a deal with Iraq to develop two oilfields in their shared border. This way, both nations would expand their oil, gas, and electricity business making nearly $20 billion.

This deal is taking place despite the sanctions imposed by U.S. President Donald Trump against Tehran, which the Iranian official referred to in statements made on Sunday.

Iraq imports nearly 1.5 billion cubic feet of gas per day from Iran. Officially, Iraq owes this nation approximately $1 billion for gas supplies.

For more information, check Energía16

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