The White House will have to weigh costs and benefits carefully before tightening sanctions on Iran and Venezuela further–and decide whether the economic price is worth the diplomatic gains.
OPEC and other producers including Russia have gradually tightened supply through 2019 to reduce a global glut. OPEC and its partners may not renew the curbs when they expire after June because of the risk of over-tightening the market.
Iran's oil minister said on April 14 that U.S. sanctions on Iran and Venezuela and tensions in Libya have made the supply-demand balance in the global oil market fragile, and warned of consequences for increasing pressures on Tehran.
Venezuela output fall and Iran sanctions tightening market.
Country’s collapse has contributed to a 32% increase in crude oil prices this year.
Russia undertook to cut its production by 228,000 bbl/d but has struggled to comply with the pact.
U.S. imposed sanctions on 34 PDVSA vessels that have delivered oil to Cuba.
Sources told Reuters that Saudi Arabia is having a hard time convincing Russia to stay much longer in the OPEC-led pact, and Moscow may only agree to a three-month extension.