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Oil News: Iran Tensions and US-China Trade War Led Unstable Oil Market

May 20, 2019 | Monday

Commodities

   

On Sunday, Russian Energy Minister Alexander Novak said the current global tensions make it harder for oil-producing countries to choose decisions in maintaining the crude prices.

Regarding the current tensions within the Middle East, Novak noted that the problems within the region are getting "greater and greater." He also noted that the present U.S.-China trade dispute also weighs in destabilizing the crude oil prices.

According to Novak, during an interview, in the past few days, there are exchanges on the imposition of customs duties. Also, there are present risks on the geopolitical within the region. Novak also added that the scenario shows that the market isn't stable. There are a number of factors becoming larger and complicated in a longer-term settlement.

Comments came as tensions between Tehran and Washington escalates. After a few days of drone attacks on Saudi, the oil infrastructure are carried out by the Iranian-aligned Houthi rebels coming from Yemen.

United States President Donald Trump and his administration already contracted its hold on the Iranian oil exports and all its metals industry. That being part of the U.S. "maximum pressure" campaign. Meanwhile, Iran declared that they are to end a few of its key obligations on the 2015 nuclear deal. Only if the European signatories won't rescue the country's oil and banking industries which are blown hard by sanctions.

When question if Russia might do more in promoting security and stability within the region as a friend of Iran, Novak answered: ''We need to fine tune our relationships." That of which to issue energy security at his country's forefront.

Novak said further, “Oil is produced every day. Every day we need to produce 100 million barrels." Novak added, "these sorts of incidents, there could be a serious disparity that will affect the energy security.”

   

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