The energy sector is facing huge challenges on multiple fronts, OPEC Secretary-General Mohammad Barkindo said on Tuesday and added that the oil and gas industries are "under siege," as reported by Reuters.

"Years of underinvestment in the oil sector help explain market tightness in OPEC and outside OPEC," Barkindo further elaborated. "Venezuelan and Iranian oil is held hostage by geopolitics."

Market reaction

Crude oil prices remain under pressure following these comments and the barrel of West Texas Intermediate (WTI) was last seen trading at $108,15, where it was down 2.15% on a daily basis.