Iran increases petrodollar input to development fund

Business Materials 21 December 2016 19:48 (UTC +04:00)

Tehran, Iran, Dec. 21

By Mehdi Sepahvand – Trend:

Members of Iran’s Parliament passed a law Dec. 21 which increases the share of petrodollars in the National Development Fund.

According to the law, crude oil, gas condensate and net gas export revenues will make 30 percent of the Fund during the first year of the 6th Development Plan, which will start March 2017, SHANA news agency reported Dec. 21.

Also, according to the law, in the years 2 to 5 of the 6th Development Plan, the petrodollar share in the National Development Fund will rise by a minimum of 2 percent each year.

Iran has aimed at the production of 4 million barrels per day (mbpd) of oil. It suffered a severe decline of export due to sanctions. While before the sanctions the country used to export 2.3 mbpd, it could only export 1 mbpd up to January when the sanctions were lifted.

Iran’s crude oil price witnessed over $4 per barrel increase in the global markets during the week that ended Dec. 9, the National Iranian Oil Company's OPEC Affairs and International Energy Forums Office said in its latest weekly report.

Each barrel of Iran’s Light oil was sold at $50.82 during the week to Dec. 9, or $4.22 more compared to the previous week.

The price of Iranian Heavy oil stood at $49.68, indicating a rise by $4.31 compared to the preceding week.

The average price of Iran’s Light oil this year was $40.35, while the average price of Heavy oil was $38.4.