World, Economy

OPEC asks quick resolution of US-Venezuela-Iran tension

Venezuela, Iran will remain exempted from implementation of oil supply adjustment, says secretary general

Beyza Binnur Dönmez   | 08.07.2019
OPEC asks quick resolution of US-Venezuela-Iran tension


The Organization of the Petroleum Exporting Countries (OPEC) on Monday called for a "quick" resolution of the conflicts following the U.S. sanctions on Venezuela and Iran -- two founding members of the organization.

The affected countries would remain exempted from the implementation of the oil supply adjustment of 1.2 million barrels a day owing to their situation, Mohammad Barkindo, the secretary general of OPEC told reporters in Vienna, according to a Nigerian daily, This Day.

The decision is taken due to the situation confronting Venezuela and Iran and the effects of the sanctions and how it will affect their production, Barkindo said.

He added that Libya will remain exempted together with these two countries.

“For us we will welcome a resolution of the issues that are at stake between these countries and the U.S. sanctions distort markets and further complicate our efforts with non-OPEC members to maintain stability," Barkindo said.

He stressed those geopolitical tensions are "inimical" to stability across the world and the organization is looking forward to world leaders to continue to do their best to ensure that conflicts on trade and military are avoided.

“The world needs peace and stability to ensure growth and development,” he added.

- US sanctions on Venezuela, Iran

The U.S. blacklisted Venezuelan state-owned oil company PDVSA in January, expecting to block $7 billion in assets and cause $11 billion of lost export revenue over the next year.

National Security Adviser John Bolton also put foreign banks on notice, saying any financial institutions caught engaging in "illegal transactions that benefit Nicolas Maduro and his corrupt network" will face economic penalties.

First sanction package for Iran was launched by the Washington administration on Aug. 7, 2018 following a unilateral withdrawal of the U.S. from a nuclear agreement between Iran and five big nations.

The second sanction package was implemented against Tehran on Nov. 5, in the same year.

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