News ID: 56613
Published: 0155 GMT December 02, 2014

MP: Iran is used to low oil income

MP: Iran is used to low oil income

Spokesman for the Majlis Energy Commission Hossein Amiri Khamkani referred to the reduced dependence of Iran on oil revenues and said the US and Saudi Arabia are willing to exert more pressures on Iran by cutting oil price.

Speaking to IRNA, the parliamentarian said the oil price slump has its root in political and economic factors, adding that the Iranian government is used to low oil revenues and during the past year has administered the country with the least amount of oil income.

Rejecting pressures imposed on Iran as futile, Khamkani said reduced oil revenues cannot have a significant impact on the economic situation of the country.

Referring to the competition between Saudi Arabia and Russia in the field of oil export, he said prior to the OPEC meeting Saudi Arabia tied drop in its oil production to oil production cut by Russia but received a negative response from Moscow.

He further remarked that in previous sessions OPEC members made their decisions on the basis of market conditions and did not pay attention to the decisions of non-OPEC states.

He referred to preventing stabilization of oil shale status in the market as another reason for disagreement of Saudi Arabia and other Arab members of OPEC with reduced oil production. He said in the opinion of these members oil output cut by OPEC members results in control of share of OPEC members in the oil market by oil shale producers and unconventional sources.

The 166th OPEC ministerial meeting was held in Vienna last week which decided to set production ceiling at 30 million barrels per day.

The 30 percent drop in oil price in recent months has increased pressures on OPEC to reduce production in order to defend oil price. However, some experts have warned that if OPEC disagrees to lower its oil production to an outstanding level oil price could drop even to $60 per barrel.

   
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Resource: IRNA
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