"Energy and resources experts agree if the situation in Iran gets out of control it will have a massive impact on global oil and financial markets. That was not the case after the removal of Nicolas Maduro in Venezuela. Then again, Iran produces four times as much oil. "Iran is the third-largest producer in OPEC. Its output covers roughly 4% of global demand. Venezuela only produces about 1%," says Andreas Goldthau, director of the Willy Brandt School of Public Policy at Germany's University of Erfurt."
""Iran is estimated to export about 2 million barrels a day, in Venezuela it's only 350,000," the energy expert continues. "Global markets would feel it far more intensely if Iranian production stopped." Moreover, fear of regional conflict in the Gulf weighs heavy in Iran's case. "Roughly half of the world's oil reserves and a third of global oil production is in the Middle East. Political developments in Iran impact markets far more significantly than those in Venezuela," says Goldthau."
Iran produces about four times the oil of Venezuela and is the third-largest OPEC producer, covering roughly 4% of global demand compared with Venezuela's roughly 1%. Iran exports about 2 million barrels per day versus Venezuela's roughly 350,000, so a halt in Iranian production would more intensely affect global oil and financial markets. The Middle East holds roughly half of the world's oil reserves and a third of global production, increasing regional risk. Venezuela's large reserves are heavy crude requiring specialized technology and remote infrastructure. Both countries face international sanctions that limit equipment, maintenance, and foreign investment, degrading refinery outputs.
Read at www.dw.com
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