Global Economy Still ‘Very Fragile’ despite Iran Oil Waivers: IEA Chief
TEHRAN (Tasnim) – Waivers on Iranian sanctions granted by the United States provided some relief to oil markets but the global economy is still very fragile, the head of the International Energy Agency said on Tuesday.
“The US decision on the Iranian sanction waivers took some of the players in the market by surprise and, as a result, what we see today are that markets are well supplied and the price went down by $20," Fatih Birol said on the margins of an energy conference, Reuters reported.
“But the global economy is still going through a very difficult time and is very fragile and, as a result of the increase in production, we have very thin production capacity left in the world, in a world which is becoming more dangerous,” he said, reiterating calls on key producers to increase output at their December meeting.
Earlier this month, the US administration agreed to allow eight countries to continue purchasing Iran’s crude oil for another 180 days.
Iranian President Hassan Rouhani reiterated recently that the country will continue to export oil, saying US sanctions are part of a psychological war doomed to failure.
Iran is currently awaiting the EU to launch a clearing house that would help match Iranian oil and gas exports against purchases of EU goods, bypassing dollar-based US financial vehicles.
