STREAMING NOW: Watch Now

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.

New York Coronavirus Cases

County data is updated nightly.

Confirmed Cases: 495464

Reported Deaths: 33422
CountyConfirmedDeaths
Queens762207291
Kings745537383
Bronx550114986
Nassau493122208
Suffolk486632019
Westchester401311470
New York357233192
Rockland17685683
Richmond170481094
Orange13457505
Erie12819713
Monroe7111300
Dutchess5438163
Onondaga5309207
Albany3577136
Broome336883
Oneida2681128
Ulster247195
Niagara2041101
Putnam179463
Sullivan174348
Chemung16403
Schenectady154650
Saratoga130817
Rensselaer108042
Steuben96257
Chautauqua88413
Columbia68038
Ontario64435
Oswego6164
Tompkins6030
Tioga57230
Madison55917
Cortland5100
Greene49018
Cattaraugus4616
Warren45033
Wayne4485
Orleans39354
Otsego3905
Herkimer38710
St. Lawrence3864
Chenango3817
Genesee3805
Cayuga3642
Fulton36124
Washington33214
Livingston2808
Allegany2711
Montgomery2614
Clinton2405
Jefferson2020
Essex1970
Wyoming1825
Delaware1697
Seneca1403
Schuyler1160
Yates1127
Schoharie1090
Lewis1080
Franklin790
Hamilton160
Unassigned021
Utica
Overcast
40° wxIcon
Hi: 51° Lo: 39°
Feels Like: 37°
Oneonta
Overcast
39° wxIcon
Hi: 55° Lo: 39°
Feels Like: 39°
Herkimer
Overcast
40° wxIcon
Hi: 51° Lo: 38°
Feels Like: 37°
Thendara
Overcast
40° wxIcon
Hi: 47° Lo: 32°
Feels Like: 37°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Click here to learn more about A Healthier Mohawk Valley
VOTE OCTOBER 22-30
Saluting Those Who Are Proud 2 Serve
WKTV Golf Card - Under 150 left