Iran adapting its plans in budget for low oil prices, says VP

Oil&Gas Materials 21 April 2020 17:03 (UTC +04:00)
Iran adapting its plans in budget for low oil prices, says VP

BAKU, Azerbaijan, April 21

By Elnur Baghishov - Trend:

Iran has adapted its programs and plans for its budget, as far as low oil prices go, said Iran's first Vice-President Eshaq Jahangiri, Trend reports citing official website of the VP.

According to Jahangiri, US sanctions against Iran and other economic problems have resulted in the government making the necessary preparations to run the country.

Jahangiri added that the US, which accounts for 25 percent of the world's crude production, sold oil at a negative price last night. This indicates that other countries will also be affected by the negative economic consequences of the coronavirus.

He said that until a few months ago, the price of a barrel of oil was over $50 and no one believed that the price of OPEC oil would fall below $20.

"Even OPEC's decision to reduce oil production in member and non-member countries by 10 million barrels has not affected the fall in oil prices," he said.

Jahangiri said that the fall in oil prices indicates that other petroleum products and petrochemicals will be affected as well.

"Therefore, universities and research centers in Iran must find scientific solutions to this problem, and the relevant agencies must adjust programs to suit the current situation," he said.

The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies and individuals.