The oil and gas industry is trapped because of years of underinvestment. If oil from Venezuela and Iran could return to the market, relief would come from the current global energy crisis, the secretary general of the Organization of the Petroleum Exporting Countries said.
Sanctions on Venezuelan and Iranian oil
Mohammad Barkindo recalled that Western sanctions on Venezuelan and Iranian oil contribute to the fact that there is less black gold on the market than there could be. And so its price is also higher than it could be if these countries could supply it as much as they want.
In addition, there is a partial embargo on Russian oil imports to the European Union and the USA, which will come into full force from the end of this year. Twenty-seven will lose at least two-thirds of their oil imports from Russia, and some countries will abandon the raw material altogether.
Oil fell on Tuesday
“We could unblock resources and strengthen capacities if the Islamic Republic of Iran and Venezuela were allowed to return to the market,” Mohammad Barkindo said during an energy conference in the Nigerian capital of Abuja. Meanwhile, the price of oil fell dramatically in global markets on Tuesday as fears of a global economic recession intensified. Oil has become cheaper by almost six percent.
