SMM, Sept. 14: oil prices could break through $80 a barrel unless other oil producers take action to make up for deepening supply losses in Iran and Venezuela, the (iea) warned. In a monthly report, the International Energy Agency said Iran's crude oil exports had fallen sharply before the U. S. sanctions came into effect. The Middle Eastern country will face further pressure in the coming months, and Venezuela's economic crisis is pushing output to its lowest level in decades.
"if exports from Venezuela and Iran continue to fall, the market could tighten and oil prices could rise," unless production elsewhere offsets growth, according to a report released by the agency. Oil prices rose to a three-month high above $80 a barrel in London on Wednesday as concerns about supply shortages overshadowed concerns about demand risks such as the US.
Although OPEC (Organization of Petroleum Exporting Countries,) and its allies, including Russia, have pledged to increase supply, the IEA said it remained to be seen how much supply would be provided.
Saudi Arabia last month increased its production by 70,000 barrels a day to 10.42 million barrels a day, but "there is still some distance from the level originally proposed by Saudi officials at 11 million barrels a day," the IEA said.
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