Due to recent sanctions on Iran and Venezuela imposed by the United States, and tensions in Libya, the supply-demand balance in the global oil market became fragile, according to a statement from Iran’s oil minister on Sunday.
He also warned of consequences for the increasing pressure on Iran.
According to Reuters, oil prices have risen more than 30 percent this year on the back of supply cuts led by the Organization of the Petroleum Exporting Countries and U.S. sanctions on oil exporters Iran and Venezuela, plus escalating conflict in OPEC member Libya.
Iranian Oil Minister Bijan Namdar Zangeneh talked with Tasnim News about the issue, saying that:
“Oil prices are increasing every day. That shows the market is worried. 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. If they (the Americans) decide to increase pressures on Iran, the fragility will increase in an unpredictable way.’’
Zangeneh also said that these kinds of pressures towards Iran will make 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,’’ he pointed out.
After U.S. President Donald Trump pulled out of the 2015 nuclear deal between Iran and six world powers, the White House reimposed sanctions last November. Iranian oil exports have been halved as a consequence of these sanctions.
Obviously, the main target of President Donald Trump is to halt Iranian oil exports, cutting off Tehran main source of revenue.
Iran is constantly pressuring Iran to curtail its nuclear program and stop backing militant proxies across the Middle East.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies will make a meeting in June to decide their actions for the recent happenings.