Iran able to neutralize cheap oil impact- Oil minister

Baku, Azerbaijan, Oct. 29

By Dalga Khatinoglu- Trend:

Iran's oil minister said the decline in oil price has impacted Iran, but there are some tools to minimize the damage.

Bijan Namdar Zanganeh told Trend on Nov.13 that a significant drop in global oil prices would impact Iran's economy and upstream projects, but Iran could pass through this stage by taking counterbalancing measures.

Zanganeh, who arrived to Azerbaijan as part of Iranian delegation headed by President Hassan Rouhani on Wednsday, said that Iran will compensate for the effect of low oil revenues on upstream projects by issuing credits from the National Development Fund to the contractors which engaged in upstream projects.

Iran's yearly budget is set based on oil price at $100 per a barrel, but according to OPEC's official website, its oil basket price dropped to $76.96 on Nov.11 compared to $107.89 in mid-June.

The effect of dropping oil price is double on Iran because Iran's fiscal year will end on March 20, 2014.

According to the yearly budget, Iranian government should deliver 29 percent of oil revenues to the National Development Fund of Iran (NDF) to be used as financial facilities in the private sector's projects. According to estimations, Iran would face a $2 billion deficit in oil revenues to meet the considered figure in budget law.

The Fund's assets were $64.4 billion until August, the chairman of the board of directors of the NDF Qasem Hosseini said.

Zanganeh says that Iran planned to pursue a contractionary monetary policy for next year and to implement some projects aimed to boost the projects' efficiency rate, alongside increasing tax revenues to compensate for the low oil price's affect on the economy.

OPEC members must take measures

Iranian Oil minister referred to OPEC's upcoming meeting on Nov.27, saying that Iran will make information exchange with other 11 members to evaluate the situation to make decision how OPEC can stabilize oil prices.

"I think OPEC members are in a maturity level that can take important measure in sensitive situations in favor of members' interests," 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 production level 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, he added.

According to OPEC's latest monthly report, published on Nov.13, the cartel members produced 30.253 million barrels of oil per day in October, 226,400 barrels less than the previous month.

Earnings from fuel savings in Iran paid to investors
Earnings from fuel savings in Iran paid to investors
Buy/sell operations at Iran Mercantile Exchange soar
Buy/sell operations at Iran Mercantile Exchange soar
Iran unveils details exports from Maragheh County
Iran unveils details exports from Maragheh County
Loading Bars
Latest
Weekly review of main events in ICT sector of Azerbaijan
Earnings from fuel savings in Iran paid to investors
Uzbekistan's CCI, Portuguese Industrial Association establish co-op
Buy/sell operations at Iran Mercantile Exchange soar
Rosatom, Uzbekistan working on contract for building nuclear power plant
Turkmenistan to create electronic exchange database
IMF calls on Georgia to reduce capital expenditures in case of lockdown
Russia reports a new high of 9,321 coronavirus cases since March 20
Azerbaijan's Albanian-Udi Christian community members visit ancient temple in Tugh - Trend TV (PHOTO)
OSCE MG should force Armenia to follow terms of trilateral statement - Azerbaijan's Parliament
Weekly review of Azerbaijani currency market
Azerbaijan, Turkic Council discuss creation of joint digital tools
Weekly review of Azerbaijani precious metals market
EU rep should follow int'l law before meeting with separatist in Karabakh - expert
Potential areas of Turkmenistan’s interaction within Visegrad Group+Central Asia framework identified
Georgia reports 1,219 new coronavirus cases for April 17
Georgia holds auction for privatization of state property
Azerbaijani MP talks about spring session of IPA CIS held in Russia's St. Petersburg
Georgia continues to conduct research on Namakhvani HPP
Iran unveils details exports from Maragheh County
Kazakhstan reveals total number of TEU containers shipped along Aktau-Baku feeder line
There have always been good grape varieties in Pirshaghi – white and black Shani - President Aliyev
Participants of Azercell Student Bursary and Internship Programs share their success stories
Iran boosts aluminum ingots production
Azerbaijani police find mortar shells, detonators left by Armenia in Gubadly (VIDEO)
Iran declares amount of loans issued to SMEs
Kazakhstan's revenues from road cargo transportation down
Concept of ensuring security of Afghan section of TAPI signed
Members of Albanian-Udi Christian religious community of Azerbaijan visit liberated Khojavand (PHOTO)
Australia to continue review of COVID vaccinations - health minister
Italian media outlets highlight speech of Azerbaijani president at int'l conference in Baku
Kazakhstan decreases import of Ukraine-made goods y-o-y
Kazakh national atomic company's subsidiary opens tender to buy compressors
Azerbaijan sets up structure to work on urban planning in liberated lands
Kazakhstan's oil & gas company opens tender to develop consolidated time standards
Meeting of EU special rep with so-called "FM of Karabakh" promotes separatism, says Azerbaijani expert
Iranian currency rates for April 17
Iran to increase vaccinations as fourth wave of COVID-19 rises
Iran reaches target uranium enrichment
Oil demand to keep on rising in May, June 2021
Work on provision of electricity to Azerbaijan's liberated Sugovushan nearing completion
Bulgaria sees Georgia as valuable partner
Significant number of Georgian citizens register for employment program in Israel
Kazakhstan’s COVID-19 caseload up by 2,822
Ukraine receives first batch of Pfizer vaccine under COVAX initiative
IMF corrects estimate on Iran's foreign exchange bank reserves
Azerbaijan attracting foreign investments for renewable energy projects
Uzbekistan to open an embassy in Sweden
Global COVID-19 infection rate approaching highest: WHO
Portugal resumes flights to Brazil, Britain
Turkey reports over 63,000 daily COVID-19 cases
EU eyes to provide grants to Georgian non-profit organizations
Israel reports 41 new COVID-19 cases, 836,740 in total
Biden signs order keeping Trump-era refugee cap at 15,000
EU-UK trade plunges after Brexit: Eurostat
UK records another 2,596 coronavirus cases, 34 deaths
UN Security Council approves ceasefire monitors for Libya
North Macedonia vaccinates some 35,000 citizens
Raul Castro resigning from Cuba’s Communist Party
Azerbaijani IT company working on creating new network, server infrastructures
Georgian Economy Ministry to form expert council on Namakhvani HPP
Relations between Russia, Azerbaijan attain degree of strategic alliance - Federation Council Chair of Russian Federal Assembly
Turkish engineers develop fiber that kills coronavirus in minutes
Uzbekistan’s gold and foreign exchange reserves drop to $32.6 billion
Iran’s petrochemical output to reach $40b: Oil Minister
Relations within CIS IA to make comprehensive partnership ties more profound among member states - Chair of Azerbaijani Parliament (PHOTO)
Azerbaijani gymnasts win set of awards at Trampoline Hopes Cup tournament
Russia to permanently ban entry for eight US officials
Liabilities of Azerbaijan's Kapital Bank increase in 1Q2021
Azerbaijan's Kapital Bank completes 1Q2021 with profit
Azerbaijan’s production of oil and gas condensate down
Big share of Azerbaijan's GDP in Q1 2021 accounts for industrial sector
Azerbaijan announces date of next coupon payments on SOCAR bonds
Uzbekistan, Kyrgyzstan increase trade turnover
Azerbaijani insurance company to increase volume of payouts
Georgia, Turkey have significant prospects for co-op in agriculture, forestry
Georgian 'Mambo Frost' company exports its products to Azerbaijan
Fighter aircraft crashes in Kazakhstan
Russia adds 8,995 COVID-19 cases
Head of EU Delegation to Azerbaijan summoned to Azerbaijani MFA
Georgian budget to save funds thanks to low-interest rate on new Eurobonds
Azerbaijan discloses number of COVID-19 vaccinated citizens
Azerbaijan confirms 2,163 more COVID-19 cases, 2,251 recoveries
Frequency of regular flights between Georgia and Israel increases
Azerbaijani president, first lady sign obituary on famous film director’s death
Georgia not to revise 2021 budget
Volume of cargo exported by Azerbaijan via sea in 2021 disclosed
Raisina dialogue: Indo-Pacific epicentre of strategic competition, says Australia PM
Azerbaijan records sharp increase in cargo movement by air
Remittance inflows from Azerbaijan to Georgia show growth
Decrease in apartment prices in Georgia not expected - analyst
US investors aim to finance Georgian startups
Azerbaijan expanding network of seismic stations (PHOTO)
Turkmenistan prioritizes promotion of domestic goods to world markets
Kazakhstan boosts trade with Tajikistan despite COVID-19
Azerbaijan shows footage from Memer village of Gubadli district (PHOTO/VIDEO)
Nominal income of Azerbaijani population drops for Q12021
Foreigners show interest in making investments in Georgia
Azerbaijan's Azertutun company to be privatized - decree
Kazakhstan to amend rules for use of unmanned aircraft systems
All news