Iran's official: Expectations to sell 1M barrels of oil daily based on real figures
BAKU, Azerbaijan, Dec. 11
By Elnur Baghishov - Trend:
The expectation of selling one million barrels of oil daily, indicated in Iran's state budget for the next Iranian year (from March 21, 2020, to March 21, 2021), is based on real figures, Deputy Head of Iran's Plan and Budget Organization Hamid Pourmohammadi said, Trend reports citing Mehr News Agency.
Pourmohammadi noted that Iran's daily oil exports in 2016-2017 and in 2017-2018 was 2.5 million barrels.
Due to the US sanctions, in the current Iranian year (from March 21, 2019, to March 21, 2020), this figure was lowered to 1.4 million barrels, Pourmohammadi added.
The problems created by the sanctions have become opportunities, he said adding that oil revenues in the next year's budget will be used for construction work.
If the process of reducing the budget's dependence on oil revenues continues and oil revenues are invested in projects, it will be possible for Iran to get rid of the dependence on oil revenues that have hit its economy, the official said.
One of the main factors that has hit the Iranian economy is the fluctuations in oil prices. Governments spend a lot of money when oil prices go up; however, expenditures cannot be reduced if the oil falls, the deputy head added.
The US imposed sanctions on Iran in November 2019 and expanded them in several stages. The sanctions have had negative impact on Iran's oil exports.
Iran's draft budget for the next Iranian year worth 4.84 quadrillion rials (about $115 billion) was submitted to the parliament on Dec. 8.
The budget for next year will reach 19.8 quadrillion rials (about $473 billion) in terms of reserves.
The revenues worth 454.9 trillion rials (about $10.8 billion) to be obtained from crude oil export are envisaged in Iran’s budget.