Workers collect samples of crude oil in bottles at a multiple well platform in an oilfield near Nizhnevartovsk, Russia. (Photographer: Andrey Rudakov/Bloomberg)

These Two Events Are Bigger Concerns For Oil Market Than Syria

The U.S.-led military strike in Syria may not have a significant impact on the oil market, according to Arvind Sanger, managing partner at Geosphere Capital Management.

Instead, Sanger said traders will focus on two upcoming events that could keep oil and ergo the Indian market on the edge.

First, the presidential election in Venezuela on May 20, where there is a good chance of manipulation by President Nicolas Maduro. “There is a possibility that there could be some sanctions from the U.S. if that happens.” Venezuela, a major oil-producing country, saw its output drop by 30,000 barrels a day to 1.68 million barrels in March.

Second, the renewal of the sanctions for the U.S.-Iran nuclear deal. Sanger said President Trump may decide the renewal is against the country's best interest, which could lead to more pressure on the oil market.

The fundamentals of demand and supply are already tight with global inventories falling. While these are only modest risks to global markets, Indian markets will remain on edge in the near terms since the country depends heavily on its oil imports.

Other important developments to look out for includes trade relations between U.S. and China, he said.

Watch the full interaction here: