Former Deputy Minister Of Energy And Mineral Resources Reveals Crazy Oil Prices Make The West Soften To Iran

Illustration (Photo: Doc. Antara)

JAKARTA - Deputy Minister (Wamen) of Energy and Mineral Resources (ESDM) Arcandra Tahar said that world oil prices experienced severe fluctuations and were currently perched at a fairly high level. According to him, there are a number of factors that cause energy commodities to be sold at high prices.

Not only from an economic point of view, oil prices are also quite vulnerable to external influences, such as geopolitical conditions in the world. This indication can be seen from the lifting of sanctions against Iran by the west.

"Negotiations on the Iranian nuclear issue have reached a meeting point, so the sanctions that have been imposed so far can be lifted," he said on Instagram @arcandra.tahar quoted Monday, June 20.

The former aide to President Jokowi revealed that the strategy adopted clearly had the hope that oil from the gulf countries could flood the market again so that it could overcome the energy crisis caused by the wars between Russia and Ukraine.

"With the lifting of this sanction, the world's oil supply could increase by at least 2.5 million barrels per day or about 2.5 percent of the world's needs," he said.

If this goal is successful, then some of the energy needs of European countries that have been flowing from Russia can be replaced.

"This means that the supply of oil from Russia which is destined for exports of 4 million barrels per day can be handled mostly from Iran," he said.

Although it doesn't really solve the problem completely, the signal of a softening of the western attitude towards Iran can be a real effort to suppress the oil price which continues to crave.

"The rest (difference in demand) can be obtained from increased production from oil fields in Saudi Arabia, Kuwait and the United Arab Emirates," said Arcandra.

As is known, oil prices continue to soar until now occupying a psychological level above 100 dollars per barrel. In fact, at the beginning of the COVID-19 pandemic crisis in 2020, the selling price of black gold was below 0 dollars per barrel aka minus because the market was in a great shock and all countries still had full reserves.