Today, the oil minister of Iran said that the sanctions that are imposed by the United States of America on Venezuela and Iran and the tensions experienced in Libya have made the balance between the supply and demand in the global oil market fragile. He also warned about the consequences of raising the pressures on Tehran.
This year, oil prices have increased by more than 30 percent. It comes on the back of supply cuts that are led by the Organization of the Petroleum Exporting Countries (OPEC) and the sanctions that are imposed by the United States on Iran and Venezuela, both oil exporters, plus the escalating dispute in Libya, an OPEC member.
Tasnim news agency quoted Bijan Zanganeh, Iran’s oil minister, as saying: “Oil prices are increasing every day. That shows the market is worried.”
He added: “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.”
Zanganeh continued: “If they (the Americans) decide to increase pressures on Iran, the fragility will increase in an unpredictable way.”
He said that one of the consequences of the pressure on Iran was an increase in fuel prices in the United States.
SHANA, the oil ministry’s news agency quoted Zanganeh as saying: “Mr. Trump should choose whether to add more pressure on Iran or keep fuel prices low at gas stations in America.”
Last November, the United States reimposed sanctions on Iran after pulling out of a 2015 nuclear agreement between it and six other world powers. The sanctions have already reduced Iranian oil exports by half.
Eventually, Donald Trump, the President of the United States of America, aims to restrict oil exports from Iran, choking off the main source of revenue of Tehran. Washington is putting pressure Iran to halt its nuclear programme and put an end to backing militant proxies across the Middle East.