Iran likely to have oil revenues secured for one year| MENAFN.COM

Monday, 05 December 2022 05:31 GMT

Iran likely to have oil revenues secured for one year


(MENAFN- Trend News Agency ) Tehran, Iran, December 1

By Mehdi Sepahvand –- Trend:

The oil revenues of Iran are predicted to stay stable over the coming year, thanks to a recent OPEC agreement to keep supply low.

Iranian Oil Minister Bijan Zanganeh was quick in announcing the agreement on Thursday before the oil producing bloc announced it in an official statement.

Iran has been loose of sanctions for nearly two years now, seeing its oil export boom from 1 mbpd to 2.3 mbpd.

The incumbent government is going to hand over its first annual budget bill to the Parliament in December with some ease of mind now, able to focus on a specific range of oil price, crude being its major source of income.

'The recent OPEC agreement departs the message that there will be balance between demand and supply and that we will have a stable market,' Mohammad Ali Khatibi, former Iranian representative at OPEC told Trend.

OPEC and non-OPEC producers led by Russia agreed on Thursday to extend oil output cuts until the end of 2018 as they try to finish clearing a global glut of crude while signaling a possible early exit from the deal if the market overheats.

OPEC also decided to cap the combined output of Nigeria and Libya at 2017 levels below 2.8 million bpd. Both countries have been exempt from cuts due to unrest and lower-than-normal production.

'This new decision shows that no matter how they vary in political positions, oil exporters share interests regarding crude revenues. They want prices to stay at some middle ground between 60 and 70 dollars per barrel,' Khatibi noted.

Iran just last year managed to make Saudi Arabia resign from a self-initiated production race that was driving prices head-on to the 30-dollars per barrel.

The Iranian crude was dealt at around $60 per barrel in November, up 50 percent from about a year earlier.

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