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 1:58 PM
Updated: May 8, 2018 1:58 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.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 343505

Reported Deaths: 7543
CountyCasesDeaths
Hinds23932444
DeSoto23229283
Harrison20527329
Rankin15411291
Jackson15232252
Madison10959227
Lee10719179
Jones9047169
Forrest8723159
Lauderdale7884244
Lowndes7054151
Lamar702989
Lafayette6548124
Washington5595139
Pearl River5196152
Bolivar4954134
Oktibbeha494398
Panola4771112
Warren4728128
Marshall4701106
Pontotoc447773
Union433279
Monroe4330137
Neshoba4281181
Hancock428088
Lincoln4176116
Pike3667113
Leflore3627125
Tate353388
Alcorn350974
Sunflower347694
Scott341176
Adams340988
Yazoo339376
Copiah324968
Simpson322891
Itawamba314680
Coahoma314085
Tippah306568
Prentiss298863
Covington293484
Leake285475
Marion284181
Wayne277543
George272251
Grenada269488
Newton262364
Tishomingo239770
Winston236784
Jasper230648
Stone229637
Attala226373
Chickasaw219060
Holmes200174
Clay197654
Clarke186880
Tallahatchie183742
Calhoun181332
Smith179235
Yalobusha171540
Walthall145748
Lawrence142826
Greene140134
Amite137543
Noxubee135235
Perry133538
Montgomery133044
Carroll126431
Webster121232
Jefferson Davis116734
Tunica114227
Benton106725
Claiborne105331
Kemper102429
Humphreys100133
Franklin87923
Quitman84719
Choctaw82619
Wilkinson78032
Jefferson71328
Sharkey51618
Issaquena1736
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Alabama Coronavirus Cases

Cases: 587405

Reported Deaths: 11536
CountyCasesDeaths
Jefferson853851591
Mobile48932864
Madison37517533
Shelby27280257
Tuscaloosa27171465
Montgomery26172627
Baldwin25399329
Lee17224181
Calhoun15401334
Morgan15170291
Etowah14954370
Marshall13116235
Houston12077293
Elmore10915219
St. Clair10763252
Limestone10725158
Cullman10546205
Lauderdale10255254
DeKalb9508192
Talladega8949188
Walker7793288
Autauga7563114
Jackson7400117
Blount7362139
Colbert6703142
Coffee6365132
Dale5650117
Russell480243
Chilton4771117
Covington4749125
Franklin458181
Tallapoosa4519156
Escambia441383
Chambers3949125
Dallas3743163
Clarke371263
Marion3463107
Pike332579
Lawrence3263100
Winston298773
Bibb290465
Geneva283983
Marengo262467
Barbour250961
Pickens245562
Butler240872
Hale235578
Fayette227065
Henry213945
Monroe202141
Randolph201144
Cherokee199248
Washington185239
Macon170552
Crenshaw168358
Clay166259
Cleburne161345
Lamar151038
Lowndes145455
Wilcox132331
Bullock126542
Conecuh121332
Coosa118329
Perry110528
Sumter110333
Greene99137
Choctaw64425
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