Saudi Crown Prince Mohammed bin Salman (left) and US President Donald Trump (right). Photo: Reuters
This week, oil prices have risen sharply to their highest levels since November 2018, with Nick Cunningham of Oilprice, US President Donald Trump, responsible for this.
Sanctions imposed by Washington on Iran and Venezuela have led to substantial reductions in mining in these countries.
On the other hand, the South American side was also hit by a massive power outage that knocked out oil export terminals.
At the same time, Reuters announced the explosion of two large heavy oil tanks in the Petro San Felix complex in eastern Venezuela.
Experts say Venezuelan oil cuts amount to 500,000 barrels a day.
At the same time, sanctions against Iran are aimed at limiting Iranian oil exports to less than 1 million barrels a day by May, or about 20%.
The United States is expected to extend the grace period for major Iranian oil customers for the next few months. In return, these countries must find a way to reduce imports from the Islamic Republic at that time.
There are also views that Washington is actually trying to relocate Iranian production, as some US officials have repeatedly pointed out in the past year.
According to some US officials, the price of Brent $ 65 per barrel is the Trump ceiling can accept.
But on Thursday Brent managed to get $ 68 a barrel.
The US president does not like high fuel prices. In fact, they hate them more than the regime in Iran.
However, it should be noted that the United States will not receive the support of Saudi Arabia, as was the case in 2018, when Riyadh raised the yield of more than 1 million barrels a day after Trump's call just before the imposition of sanctions on Iran.
But the amounts of oil from the last two months of last year are gone. Now the market is much tighter.
The rapid change in Riyadh's oil markets last year has led analysts to believe that the Saudis will support the United States this time.
The OPEC + decision, under pressure from Riyadh to reduce oil production, will remain in force until April.
There are very few tools that allow the United States to punish Iran and Venezuela, one of OPEC's main players, and keep oil prices low.
One of these tools is NOPEC (a law against oil and export cartel agreements) that will enable Washington to target its members to OPEC by engaging them in court cases related to the oil market's cartel monopoly.
On the other hand, US shale producers warn that such legislation will also damage their business. NOPEC could prevent OPEC from making significant cuts, forcing the organization to reach its peak.
For this reason, the American Petroleum Institute has lobbied before Congress that this bill should not be adopted.
Another tool is the US oil industry and shale fuel production, which is growing.
Foreign Minister Mike Pompeo called on industry to accelerate revenues and characterize US oil companies as a key tool in US policy.
The question is whether this production can offset redundancies in other countries.
New mining forecasts in the main shale oil outbreak in the US, Permanent Basin, show a slowdown in output growth by the middle of next decade.
Strengthening the oil markets has forced the Trump administration to review its foreign policy objectives for both Iran and China.
The decision to cut Iranian revenues below 1 million barrels is a strong contrast to the relocation target, while the expected LNG agreement with China is one of the key aspects of the forthcoming trade agreement between the two strongest economies in the world.