Baku, Azerbaijan, Oct. 29
By Temkin Jafarov - Trend:
The members of the energy commission in Iran's Parliament believe that Iranian government should take measures against falling oil price to prevent any budget deficit.
OPEC's current oil basket price shows a 25-percent drop since July. The drop created difficulties for some oil producers like Iran, who have their budgets tied to oil revenues.
OPEC oil basket price was about $82.44 on Oct.28, compared to $105.21 in late July. Iran's current budget law was ratified based on the $100 oil price.
Seyyed Mehdi Mousavinejad a member of Parliament's energy commission told Trend on Oct.29 that Iranian government should demand holding an emergency meeting among the OPEC members outright.
Mousavinejad said the OPEC Cartel has to defend the member countries' rights, which unfortunately are abused by politically-motivated drop of the oil price. He said OPEC should hold an emergency meeting to defend the interests of its members.
Iranian oil ministry news agency Shana on Oct.28 cited Mohsen Qamsari, director for international affairs at the National Iranian Oil Company, as saying an agreement to cut the oil price was unlikely at OPEC's Nov. 27 meeting.
Iranian government hasn't asked OPEC to hold urgent meeting before Nov.27 which is scheduled as an ordinary meeting among the members.
Mousavinejad believes that the falling in prices was initiated by Saudi Arabia's political revenge, which in turn was supported by some countries with Israeli lobbies.
"Unfortunately they succeeded," he said, adding that more fall in oil price would damage Iran's budget and economy even further, and the government will have to compensate dropping in oil revenues by some other financial sources.
Iran's Oil Ministry offered next year's budget be written based on $70 to $75 per barrel, but for current budget Iranian government plans to minimize the expenses in another sectors, such as the construction sector.
The deputy of head of Parliament's energy commission Mohammad Saeed Ansari told Trend on Oct.29 that the oil price in Iran's budget should be set based on realities and $100 per barrel was an unreal figure.
He said that the government hasn't requested any review over the current budget bill, but in case it be asked, parliament is ready to reconsider the oil price in the budget bill.
"There is hope for revival of the oil price partly in winter, because the global oil output in cold season decreases and demands rises, then the prices likely rise partly," he said.
Below is the U.S. Energy Information Administration's forecasts about global the oil demands:
