A French presidential official said on Monday that the international community should consider all alternatives to ease a Russian strain on energy supply that has pushed up prices, including discussions with producing countries like Iran and Venezuela.

Venezuela has been subject to US oil sanctions since 2019, and if those limitations were repealed, petroleum might be rerouted.

Indirect discussions between Iran and the US to restart a nuclear agreement that might see sanctions removed and oil shipments resumed have been on hiatus since March, but are set to begin shortly in Doha. more info

When asked how to reduce high oil costs, a French official remarked on the margins of a G7 conference in Germany, “There are resources elsewhere that need to be explored,”

He said that the ongoing problem between Iran and the US was no longer related to the nuclear dossier, but rather to US terrorist sanctions.

“So there is a knot that needs to be untied if applicable… to get Iranian oil back on the market,” the official, who spoke on the condition of anonymity, told reporters. “We have Venezuelan oil that also needs to come back to the market.”

Given the stakes, a second official said that all alternatives, including those involving Iran and Venezuela, must be considered.

The first official asked for a temporary rise in output from oil-producing countries and said that efforts would be made to persuade them to do so.

France wants a proposed mechanism to control oil prices to be as wide as possible and not confined to Russian production, which the source believes may be inefficient given supply and demand dynamics.

“We want to consolidate the position of buyers so that we can be in a better position facing Russia. So we need to diversify supplies and have an outreach to producing countries,” the French official said.

“We want producing countries to produce more temporarily to get over the peak of the crisis.”

Source: Reuters


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