Baku, Azerbaijan, Jan. 4
By Fatih Karimov - Trend:
Iran's Oil Minister Bijan Namdar Zanganeh says the country will not retreat from its principles to maintain 1 million barrels per day oil export.
Addressing a conference in Tehran on the Iranian economy, he said Iran did not move back after its oil exports dropped from 2.5 million bpd to 1 million bpd. "Now, Iran will not retreat from its stance for 1 million barrels per day of oil."
He added that a fall in supply compared to demand has led to a sharp decrease in oil prices, Iran's ISNA news agency reported on Jan. 4.
The crash in global oil prices heightens pressure on Iran to strike a nuclear deal with the West and escape crippling international sanctions, analysts say.
Iran's budget is driven by oil, and the steep price drop is making the country's economic problems even worse.
However, Iran's Vice President for Planning and Strategic Supervision Mohammad Baqer Nobakht said Dec. 29 that the country will not face any budget deficit in the current Iranian calendar year (to end March 20, 2015).
"Budget deficit happens when the revenues are not provided but the government needs to spend the money. In our case, the oil revenues projected in the budget plan have not been materialized, but the government is not going to spend the money, so it's rather not materialization of revenues rather than budget deficit," the official explained.
"Even if the oil prices fall to $35 per barrel, we can handle the situation," he said.