Potential oil supply disruptions in Iran and Venezuela have prompted oil traders to focus on geopolitics rather than fundamentals, the International Energy Agency (IEA) said in its latest monthly report Wednesday, warning that any supply cuts could prompt prices to rocket.”The potential double supply shortfall represented by Iran and Venezuela could present a major challenge for producers to fend off sharp price rises and fill the gap, not just in terms of the number of barrels but also in terms of oil quality,” the Paris-based organization said.President Donald Trump’s decision to withdraw the U.S. from the Iran nuclear deal just over a week ago — and the expected re-imposition of sanctions on the country — coupled with political and economic disorder in recession-hit Venezuela has cast the supply of Iran and the Latin American country into doubt.
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