Iran-Venezuela strengthen cooperation, oil prices continue to rise

Iran-Venezuela strengthen cooperation, oil prices continue to rise


The supply to the market of two oil giants, Iran and Venezuela, is softening the impact of rapidly increasing energy prices from the US shale industry.

Iran-Venezuela is in a state of economic turmoil, the price continues to grow
Iranian oil tanker en route to Venezuela.

Oil prices have surged 40% since the beginning of this year after European economies began to reopen and recently, the US also announced a drop in US crude inventories as demand maintained a strong recovery. return.

On June 24, oil prices increased sharply. Specifically, WTI oil traded at 73.3 USD/barrel, Brent oil at 74.7 USD/barrel. Ending the late session on June 23, Brent oil price increased 38 cents, or 0.5%, to 75.19 USD/barrel.

“Demand is picking up very quickly as European economies reopen,” said Francisco Blanch, global commodity and derivatives strategist at Bank of America.

The world energy analysts agree that the world oil price is rising, but they do not know how much the ceiling will be and how long this increase will last.

According to Blanch, in the next three years, it is not ruled out that the oil price can reach 100 USD/barrel.

Many people believe that the oil price on June 24 is also affected by doubts about the future of Iran’s 2015 nuclear deal under which US sanctions target the country’s crude oil exports. This could be removed, allowing Iran to pump more 1 million barrels of oil a day into the market.

However, the fact that Iran has successfully evaded these sanctions and the proof is that it is still making good money from shipments to the Latin American country: Venezuela is also under US sanctions pressure.

In 2020, Iran fulfilled orders to transport gasoline and refining solvents to Venezuela to solve the crisis in the country. Instead, they received gold in return from Caracas.

Although the US side announced that it had seized 4 ships transported from Iran at the end of May 2020 to Venezuela, the previous smooth shipments still created conditions for Iran to strengthen cooperation with Venezuela despite being blocked. call for punishment.

Venezuela and Iran have enjoyed a strongly fortified relationship over the past two decades, even though they have two very different political, ideological and social systems. Starting in 2019, Iran sent fuel and other material assistance to the Latin American country to help it overcome difficulties caused by the lifting of US sanctions.

Iran-Venezuela is in a state of economic turmoil, the price continues to grow
Venezuelan President Nicolas Maduro in a phone call with the President-elect of Iran.

When Iran had a new President after the mid-June elections, Venezuelan President Nicolas Maduro had a phone call and agreed to promote further cooperation to combat “imperialist aggression” against the people of the two countries. country.

“I had a phone conversation with Seyed Ebrahim Raisi, the President-elect of the Islamic Republic of Iran,” Maduro said in a statement. We have agreed to strengthen the brotherhood and cooperation for mutual progress in the common struggle against imperial aggression against our people.”

U.S. officials and think-tank analysts in Washington have frequently expressed frustration with the strategic partnership between Venezuela and Iran, viewing the alliance as an “axis of discomfort” in the context of Washington’s apparent clearly incapable of punishing and intimidating the two countries into submission.

The United States ramped up pressure against Caracas in early 2019, carrying out what Venezuelan authorities describe as a coup attempt, seizing billions of dollars of Venezuelan assets abroad and trying to block exports. oil imports – the lifeblood of the Latin American nation’s local currency income.

Last month, U.S. officials began raising the alarm about a flotilla of two Iranian ships crossing the Atlantic Ocean toward Venezuela, claiming that the ships could include weapons supplies. of Iran.

Last week, State Department spokesman Ned Price confirmed that the White House was “monitoring the situation” and warned that the United States was “ready to take advantage of existing authorities, including sanctions, against any actor that allows Iran to continually arm violent partners and terrorists around the world.”

Recently, the US also lifted more than 1,400 sanctions against Iran and may push Tehran to partially fulfill its nuclear commitments in the 2015 nuclear deal. However, the Iranian side has repeatedly emphasized that they want to lift all sanctions before reducing the level of uranium enrichment as promised.

Ma Linh

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