What will happen to gas prices after the sanctions on venezuela and iran – archyworldys static electricity human body

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The news sanctions on Iran Y Venezuela could lead to a reduction in the world’s oil supply and higher prices at gas stations this summer, some energy experts warn. Oil prices in the United States have risen almost 20% this year, reaching $ 72 a barrel due to geopolitical uncertainty and the increase in world oil demand, which put an end to an excess of production that had led to the barrel prices up to 30 dollars in 2016. Iran’s sanctions, in theory, eliminate this nation’s oil from much of the world market, while already weakened production in Venezuela is likely to fall further, standing below one million barrels per day. Iran is the fifth largest oil producer in the world, while Venezuela has fallen to 12th place. When the summer season approaches, Daniel Yergin , a senior energy analyst at IHS Cambridge Energy Research Associates, has predicted that prices in the United States could reach $ 85 this summer. However, experts do not predict a return to the price of $ 120 per barrel a decade ago. Other experts say that the world oil market is so interchangeable that, while this new scenario may have a short-term impact on prices, supplies will quickly adapt to the new reality. In addition, Iran can also avoid US sanctions by exporting more barrels to countries such as Turkey and India, which are not subject to Washington’s measures. “I think there is a tendency to exaggerate the possible impact,” he said. Gustavo Coronel, a Venezuelan political scientist who studied the oil industry. “In the short term, some impacts may be felt, but the oil market has a tendency to correct itself in the medium term (from six to 12 months),” he told Univision News. Venezuela’s production has already fallen to the point that it has become almost irrelevant in global terms, despite having the largest oil and gas reserves in the world, added Coronel. “From a US perspective, Canadians have really replaced Venezuela,” he said, noting that Washington now imports more than 50% of its Canadian oil needs, thanks to the notorious Keystone pipeline that transports Canadian heavy oil from Alberta tar sands to American refineries in Texas and Illinois. “We have reduced (import) to 400,000 barrels per day from Venezuela,” he added, citing official data from the Energy Information Administration (EIA). Two decades ago, Venezuela supplied 1.6 million barrels per day to the United States, more than the current total capacity of the South American country. In fact, Colombia this year overtook Venezuela as the fifth largest oil exporter to the United States. In a dramatic reversal, Venezuela now imports large quantities of light crude from the United States due to its own lack of refining capacity.

Pinon said he is so horrified by the fall in oil production in Venezuela that “I wake up every morning wondering how the Venezuelan government has not collapsed.” World oil production Iran and Venezuela continue to be important suppliers in the world market, and together they provide approximately one in 20 barrels. Global oil supplies can support a “significant reduction” in Iran’s exports, according to a White House memo published by Reuters in March. The Trump administration’s sanctions will go into effect in November, allowing the market to gradually find alternatives. China and India are Iran’s largest buyers of crude oil, which currently produces around 3.8 million barrels per day, almost one million barrels more since the sanctions were lifted in 2016. If Iran’s production were to fall again in 2015, that would mean just under 1% of total global production. Venezuelan production is at its lowest point in decades and has fallen by more than 200,000 barrels per day since the end of last year. It is expected to fall further as its already chronic economic crisis deteriorates. One third of Venezuela’s production is sent to China and Russia to pay the outstanding debt, with only two thirds for customers paying in cash, such as the United States. Venezuela’s domestic consumption has decreased to 500,000 barrels per day from 700,000 barrels per day. ConocoPhillips seized Venezuelan export terminals of oil in the Caribbean this month as compensation for the nationalization of its assets in Venezuela, and more than a dozen Venezuelan oil tankers had to be redirected. “In Venezuela, the rate of decline in oil production is accelerating and by the end of this year production could have fallen by several hundred thousand barrels per day,” said the Administration for Energy Information (AIE). , for its acronym in English) in a report last week. “The potential double supply deficit represented by Iran and Venezuela could present a great challenge for producers to defend themselves from strong price rises,” he said. The IEA said it is still confident that global demand growth will remain strong, projecting 99.2 million barrels per day this year. “Anyway,” the IEA said, “the fact is that oil prices have risen almost 75% since June 2017. It would be extraordinary if such a big jump would not affect the growth of demand.”