Tayyebnia: We Will Revise the Budget Based on Oil at $40

The Iranian Minister of Economy announced the government's plan to revise the oil sale price in the 2015 budget to $40 per barrel. According to Fars News Agency, Ali Tayyebnia stated on Thursday, January 25, "The budget bill was drafted based on oil sales at $70 per barrel, but we are now revising this bill to $40." In the 2014 budget bill, the oil price was projected at $100 per barrel, but due to an unprecedented drop in oil prices in recent months, the Iranian government was forced to reduce this figure to $72 for the upcoming year. Meanwhile, some members of parliament have mentioned the possibility of calculating a zero price for oil in the 2015 budget bill. For instance, Hossein Amiri, spokesperson for the Energy Commission of Parliament, said on January 14, "What has become a concern for some representatives is the oil price in the 2015 budget, which they are considering at a minimum price or zero." Oil prices have now reached their lowest level in the past six years, and according to OPEC statistics, the price of the organization's oil basket is currently around $45. The Minister of Economy further stated that the drop in oil prices is "only due to Iran and Russia." He added, "The enemy has created such conditions to pressure Iran by lowering oil prices." Iran and Venezuela emphasize reducing OPEC production, while Saudi Arabia claims that a reduction in production by the organization's members will allow other oil producers to quickly fill the gap left by OPEC in global markets. In recent weeks, Islamic Republic officials have repeatedly criticized what they describe as the "role of Saudi Arabia" in lowering oil prices. Meanwhile, Iranian President Hassan Rouhani stated on Tuesday, January 23, "This path is not sustainable for them; if Iran suffers from the drop in oil prices, know that other producing countries like Saudi Arabia and Kuwait will suffer more than Iran." Massoud Mir Kazemi, former oil minister and member of the Energy Commission of Parliament, also stated on Sunday, January 14, that the U.S. manages the oil market and has lowered oil prices to increase pressure on Iran in nuclear negotiations with the 1+5 group. The Minister of Economy also noted the reduction in oil exports from 2.4 million barrels to one million barrels in recent years, adding, "Only countries that the U.S. has allowed buy oil from us." According to Tayyebnia, the U.S. has set a specific amount for these countries to purchase oil from Iran. Mohsen Rezaei, Secretary of the Expediency Discernment Council, stated on Sunday, January 21, that the sanctions of the past three years have reduced Iran's crude oil exports by 50% and the country's oil revenues by "one hundred billion dollars." Before international sanctions due to its nuclear activities, Iran exported two and a half million barrels of oil daily and produced about three million seven hundred thousand barrels of oil. According to the current budget law, it is predicted that Iran will export one million three hundred thousand barrels of crude oil and gas condensates daily.