After long negotiations, Iran, the United States and five other world powers reached a historic agreement to curb Iran’s nuclear program.
Some economists in Alaska are worried about the impact this will have on the already saturated global oil markets. When economic sanctions are lifted, Iran could flood the global oil market with up to a million barrels a day of new oil.
“Alaska should be paying attention because Iran is potentially one of the big producers of oil in the world,” said Scott Goldsmith, an economics professor at the University of Alaska Anchorage.
Goldsmith says this will likely keep oil prices low. “I don’t anticipate that there will be any kind of downward shock associated with this event in the near term, more important is looking out a year or two into the future, if Iran is able to increase production,” he said.
Although it’s good news for drivers at the pump, it’s bad new for our state budget — which relies on higher oil prices to pay our bills.
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