OPEC official: Ditching Iran deal would harm global economy

The head of OPEC has warned that a decision by President Donald Trump to abandon the Iran nuclear deal would harm the...

Posted: May 8, 2018 2:58 PM
Updated: May 8, 2018 2:58 PM

The head of OPEC has warned that a decision by President Donald Trump to abandon the Iran nuclear deal would harm the global economy.

In an interview with CNNMoney, OPEC Secretary General Mohammad Barkindo said that any factor that prevents the smooth running of the oil industry "will not be in the interest of the global economy."

"Whatever extraneous factor that affects supply or demand, will no doubt send the market into disequilibrium, which is not in the interest of producers, or the interest of consumers," he said when asked about the consequences of ditching the Iran nuclear agreement.

Trump has repeatedly threatened to rip up the Iran accord, which he has described as "the worst deal ever." He said he plans to announce his decision on the matter on Tuesday at 2:00 p.m. ET.

Related: World holds breath for Trump's Iran deal decision

The United States and other powers agreed to lift some economic sanctions under the 2015 deal in return for Iran agreeing to rein in its nuclear program. The sanctions had limited energy investment and production, and Iran's oil industry has sprung back to life since they were lifted.

Iranian oil exports have increased by roughly 1 million barrels per day since early 2016, and the big question is whether the market will be able to cope with a sharp drop in supply if sanctions are reimposed.

Worries over potential supply disruptions have already caused oil prices to spike. They've surged nearly 13% over the past month and hit their highest level since 2014, while the price of US gas has jumped to a national average of $2.81 a gallon.

Related: Who loses if Trump kills the Iran deal?

Barkindo said that price hikes were being driven by "volatility that occasionally returns to the market" as a result of "geopolitical tensions."

A Nigerian who is serving a three-year term as secretary general, Barkindo said that OPEC would continue to seek a balanced oil market. The interview was conducted before Trump said an announcement on Iran was imminent.

The cartel and its allies agreed to slash output in late 2016, a response to oversupply and an oil price crash. The agreement has been extended until the end of 2018.

The secretary general said it had taken four "long" years for OPEC to get where it is today, with prices hovering around $70.

Barkindo said the cartel was committed to seeing the agreement through, but he hinted that market conditions could spur a change.

"We have always been flexible. There is nothing sacrosanct in this market," Barkindo said.

West Lafayette
Clear
74° wxIcon
Hi: 86° Lo: 62°
Feels Like: 74°
Kokomo
Clear
68° wxIcon
Hi: 84° Lo: 59°
Feels Like: 68°
Rensselaer
Clear
64° wxIcon
Hi: 82° Lo: 58°
Feels Like: 64°
Fowler
Clear
64° wxIcon
Hi: 83° Lo: 60°
Feels Like: 64°
Williamsport
Clear
69° wxIcon
Hi: 85° Lo: 62°
Feels Like: 69°
Crawfordsville
Clear
68° wxIcon
Hi: 83° Lo: 64°
Feels Like: 68°
Frankfort
Clear
69° wxIcon
Hi: 82° Lo: 61°
Feels Like: 69°
Delphi
Clear
69° wxIcon
Hi: 85° Lo: 60°
Feels Like: 69°
Monticello
Clear
69° wxIcon
Hi: 86° Lo: 59°
Feels Like: 69°
Logansport
Clear
70° wxIcon
Hi: 83° Lo: 58°
Feels Like: 70°
Turning Warmer & More Humid, Then Big Cool-Down
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 76522

Reported Deaths: 3086
CountyConfirmedDeaths
Marion16194731
Lake7742281
Elkhart495586
Allen4040163
St. Joseph361083
Hamilton2887104
Vanderburgh205313
Hendricks1943108
Cass18069
Johnson1794119
Porter136239
Clark130750
Tippecanoe124511
Madison103066
LaPorte93530
Howard92065
Kosciusko87212
Floyd82249
Bartholomew82147
Marshall79423
Monroe76732
Delaware76052
Vigo71411
Dubois71312
Boone69746
Noble69029
Hancock68839
Jackson5975
Warrick58830
Shelby56828
LaGrange56610
Grant53130
Dearborn51628
Morgan48934
Clinton4504
Henry41820
Wayne38810
White37711
Montgomery36021
Lawrence35727
Harrison35224
Decatur34232
Putnam3218
Daviess27920
Miami2772
Scott27310
Jasper2572
Greene25434
Franklin24715
DeKalb2384
Gibson2334
Jennings22812
Steuben2153
Ripley2138
Carroll2003
Fayette1957
Perry18713
Posey1800
Starke1807
Orange17824
Wells1782
Fulton1732
Wabash1715
Jefferson1662
Knox1640
Whitley1566
Tipton14912
Washington1441
Sullivan1411
Spencer1393
Clay1315
Huntington1273
Randolph1274
Newton12110
Adams1172
Owen1051
Jay920
Rush894
Pulaski821
Fountain762
Brown752
Blackford662
Ohio656
Benton640
Pike620
Vermillion590
Parke551
Switzerland530
Martin500
Crawford450
Union410
Warren241
Unassigned0208

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events