Iranian administration prepared to run country with $40 oil
Baku, Azerbaijan, Feb. 25
By Fatih Karimov - Trend:
Iranian administration is prepared to run the country with $40 per barrel oil, the country's first vice president Eshaq Jahangiri said.
Eshaq Jahangiri said the administration has managed to cope with many problems, such as sanctions and high inflation rate, Iran's Mehr news agency reported on Feb. 25.
"Over the past one and a half year, we succeeded in reducing the inflation rate of 40 percent to 15.4 percent," he said.
During the first half of the current Iranian fiscal year (March 21-September 21, 2014) investment rose by 18.5 percent in the country, he noted.
Moreover, the national economy grew by 4 percent, with significant developments in agricultural, industrial, oil and gas, and service sectors, he said.
Meanwhile, Iranian Minister of Economic Affairs and Finance, Ali Tayebnia on Jan. 17 dismissed media reports quoting him as saying the government will revise the oil price in its budget bill for next fiscal year(to start on March 21) down from $72 to $40/barrel.
Tayebnia said that there is no definitive prediction about oil prices, adding while some forecasts put the price below $40/barrel, some others say the price may return to $70/barrel.
"We should be prepared for all conditions," the minister said.
The government has prepared various scenarios relating to the oil price in next year from $40 to $70 per barrel, he added.
The fall in the global crude oil price from almost $110/barrel to below $50/barrel in recent months has imposed serious pressure on the Islamic Republic's economy.