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World

ATOMIC ENERGY AGENCY 10. 08. 2018.   >>  18:00 0

ATOMIC ENERGY AGENCY

Sanctions against Iran might jeopardize oil market

The US plan to impose crude oil sanctions against Iran could significantly impact global supply and exhaust the world's spare oil capacity cushion, according to the latest monthly report from the International Energy Agency (IEA).

The IEA reported that oil markets have entered a brief period of calm but a storm might be looming later this year.

“As oil sanctions against Iran take effect, perhaps in combination with production problems elsewhere, maintaining global supply might be very challenging and would come at the expense of maintaining an adequate spare capacity cushion,” the IEA said.

The US has urged all countries to completely stop imports of Iranian oil by November 4, when sanctions go into effect.

While several global powers — including the European Union, China and India — have spoken out against the scheduled sanctions, many are expected to bow to American pressure.
The IEA added that trade tensions might escalate and lead to slower economic growth, and in turn lower oil demand.

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