On Sunday, the 14th of April 2019, the Iranian oil minister said that the oil balance of supply and demand in the global market had become intensely friable following US sanctions on Iran and Venezuela, alongside raising tension on Libya, pointing towards frequent incidents of supply outage and supply gluts, inflecting the crude oil market.
In point of fact, crude oil prices had surged more than 30 percent year, largely led by the production cuts of the OPEC (Organization of Petroleum Exporting Countries) nations and US sanction on Iranian and Venezuelan heavy crude.
Besides, conflicts on Libya alongside a fluctuating US oil reserve had also added further strains into the global crude oil price. Adding that the market is worried over the direction of crude oil price, an Iran-based private news agency, Tasnim News Agency’s Bijan Zanganeh said, “Oil prices are rising every day.
That shows that the market is worried. Venezuela is in trouble. Russia is also under sanctions. Libya is convulsed. Some of the production in the United States has stopped. This shows that the balance between supply and demand is very fragile”.
If truth is to be told, had United States decided to increase pressure on Iran and Venezuela, which it had every reason to do, the fragility of crude oil price would be surging in an unpredictable way.