Iran's Energy Minister: Oil Exports Have Decreased to Less Than One-Fifth

Iran's Energy Minister states that the country's oil export revenues have decreased to "less than one-fifth" and that the economy is in a "difficult and special" situation. According to Tasnim News Agency, Hamid Chitchian said on Friday, February 5, that "our oil exports have dropped from 2.5 million barrels per day to one million barrels due to the enemy's oppressive sanctions, and the price of oil has fallen from over $100 to $40 due to the enemies' conspiracy." He added, "Our oil export revenues have currently decreased to less than one-fifth, and these issues indicate that our economy is in a difficult and special situation." The World Bank reported on Thursday, January 29, that if current oil prices continue and Iran cannot reach a comprehensive agreement on its nuclear program with six world powers by the first half of this year, the total value of its oil exports for this year will be $23 billion, while this figure reached $120 billion in 2011. Iran's crude oil exports in 2011 were 2.2 million barrels per day. According to the current budget law, it is predicted that Iran will export 1.3 million barrels of crude oil and gas condensates daily this year. David Cohen, the U.S. Treasury's Deputy Assistant Secretary for Terrorism and Financial Intelligence, stated on Wednesday, January 21, that "if oil prices remain at current levels, Iran will lose $11 billion during its nuclear negotiations with six world powers, which have been extended for seven months." Mohsen Rezaei, the Secretary of Iran's Expediency Council, also stated on Sunday, January 10, that the last three years of sanctions have reduced Iran's crude oil exports by 50% and its oil revenues by "$100 billion." According to Mr. Rezaei, if the decline in oil prices continues for the next three years, another $100 billion will be lost from Iran's oil revenues. Mohammad Baqer Nobakht, the Iranian government spokesman, reported on January 7 that 31 trillion tomans of the government’s projected revenues in the 2014 budget have not been realized, stating that "naturally, there will be difficulties." In recent months, crude oil prices have faced a severe decline, with Brent crude selling for $56.57 yesterday. Bijan Zanganeh, Iran's oil minister, stated on Thursday evening, January 16, in an interview with the Islamic Republic of Iran Broadcasting News Network that the reasons for the decline in oil prices are "fundamental market factors." He added, "There is no doubt that political factors have influenced the continuation of this situation. No one can say what percentage it has been." Mr. Zanganeh referred to comments made by Barack Obama, the U.S. President, stating that "he announced that Russia's economic growth has faced a crisis due to falling oil prices, and the U.S. has been able to pressure this country regarding Crimea and Ukraine through this." He emphasized that there has been no direct comment regarding Iran, but "we believe that the U.S. and its allies intended to strike Iran as well." Eshaq Jahangiri, the first vice president of Iran, referred to the decline in oil prices as a "conspiracy of enemies" on Tuesday, January 13. Hassan Rouhani, the President of Iran, also stated on Tuesday, January 13, that "those who have designed the decline in oil prices against certain countries will regret it." Mr. Zanganeh further mentioned that Hassan Rouhani sent messages to the leaders of the UAE, Qatar, and Kuwait before the OPEC meeting in December, but these countries did not agree with Rouhani's message. According to Mr. Zanganeh, this decision led to an increase in supply compared to demand and a drop in oil prices in global markets. The Organization of the Petroleum Exporting Countries (OPEC) maintained its daily production ceiling of 30 million barrels at its meeting on Thursday, December 6, despite the global drop in oil prices and excess reserves. Reports indicate that OPEC's oil production increased by 130,000 barrels per day in January, reaching 30 million and 370 thousand barrels.