The falling trend of oil prices in the global markets has raised some concerns about a possible budget deficit in the current Iranian calendar year (to end March 20, 2015).
Iran’s current year budget envisages the price of $100 per barrel of oil. This is while each Iranian oil barrel is currently sold at around $80.
Iran’s Mehr news agency reported that this gap will result in $2.5 billion of budget deficit by the end of the year (March 20, 2015).
Iran is daily earning $18-20 million less than the projected figure.
Iranian President Hassan Rouhani has also predicted that Iran’s total oil revenues will be 30 percent less than expected.
The Planning and Budget Commission of Iranian Parliament (Majlis) held an emergency meeting on October 18 to discuss the falling trend of oil prices in the global market and its impact on Iran’s budget law.
During the meeting, the commission’s members decided that there is no need to amend the budget law.
They said that the possible budget deficit could be managed without any amendments to the budget law.
Iran has decided to sell its crude oil to Asia in November at the biggest discount in almost six years.
The decision was made after Saudi Arabia cut prices for all grades and to all regions for November. Qatar and Iraq decreased their prices.
Iran’s current year budget envisages the price of $100 per barrel of oil. This is while each Iranian oil barrel is currently sold at $86, according to Iran’s Mehr news agency.
Based on Iran’s budget law, the country is supposed to export 1.4 million barrels of oil (including gas condensate) per day.
Masoud Mir Kazemi, the head of energy commission in Iran’s parliament and former oil minister told Mehr on Oct.17 that according to the Oil Ministry’s figures, Iran exported 0.1 mbpd less that the figure considered in the budget law, which will lead to budget deficit.
Iran’s media said on Oct. 17 that the country’s President Hassan Rouhani ordered the Oil Ministry to take measures to prevent falling of oil prices by using diplomatic leverages. The details of Rouhani’s order were not disclosed, but it could refer to a need for holding an immediate OPEC meeting.
However, Iranian Oil Minister Bijan Namdar Zanganeh says there is no need for OPEC to hold any emergency meeting. The 166th (ordinary) OPEC meeting is scheduled to be held on Nov.27 in Vienna, according to the OPEC website.
