Both countries have large oil reserves. Although oil supplies from Venezuela and Iran have been limited in recent years due to sanctions imposed by the United States, their role is taken into account by traders when forecasting prices.
As writes Reuters, futures for Brent crude rose by 40 cents (0.7%) to $62.39 per barrel, WTI crude rose by 35 cents (0.6%) to $58.11. For both grades the growth exceeded 3%, which is quite significant for the market.
At the same time, experts believe that trends in the global oil market in the near future will be determined by how the United States will dispose of Venezuelan oil stored in warehouses. If it actively goes on sale, it may push prices down. The world market is already experiencing an oversupply.
Therefore, if the situation around Iran does not become more acute, and oil from Venezuela starts coming to the market steadily, the current price rise is likely to be limited and short-lived. But geopolitical risks remain the main factor of market instability, which makes any forecasts for a longer term extremely difficult, analysts warn.
