Perry: Iran sanctions will stress oil markets

Energy Secretary Rick Perry predicted Thursday that the restoration of sanctions on Iran will stress worldwide oil markets, but called on other oil-producing nations to increase their output.

“The market is going to be stressed,” Perry said at a news conference at the World Gas Conference. “We look at this as an opportunity for the [Organization of Petroleum Exporting Countries] members to fill this gap.”

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He predicted some short-term spikes in oil prices, due both to Iran sanctions and other factors.

“I think there will be some spikes in prices from time to time. But … I think that the markets are going to become calmer and calmer as we go forward, realizing that the supply is going to be there to meet the demand.”

President Trump last month withdrew the United States from the Iran nuclear deal, in which Tehran agreed to restrict its nuclear weapons program in exchange for a loosening of economic sanctions by the United States and other countries.

The State Department said this week that it is asking Western countries to completely stop importing Iranian oil by Nov. 4.

Analysts have predicted that oil prices will spike when that deadline hits, since Iran is a significant exporter worldwide.

Perry said that is likely, but didn’t express much worry.

“I’m quite comfortable that the world’s producers of crude are going to meet the demands that’s out there,” he said.

Perry also ruled out ordering releases from the United States’ Strategic Petroleum Reserve if such price spikes occur.

“From my perspective, the Strategic Petroleum Reserve is in place for an emergency, natural disasters,” he said.

“So I would not recommend, and I don’t think that the president would either.”