$40 p/b Oil Market Price for Next Year Budget

Iranian Minister of Petroleum Bijan Zangeneh (pictured) has said the government has suggested the closest figure to the current crude oil market price of around 40 dollars per barrel to draft next year’s budget (21 March 2017 – 20 March 2018).

It is not 35 dollars. So far, 40 dollars has been suggested as the base. We need to have an eye on the market and can’t send bad signals to it,” he told Shana on the sidelines of the 4th Oil and Media Festival here on Monday evening.

Asked whether OPEC will convene an extraordinary meeting to discuss plummeting crude oil prices, he said, “As long as there is no consensus or agreement reached among the member states, any decision will hurt the market.

Some assume that the more we talk about prices in the OPEC sessions, it will be more effective,” he said and added, “However, the decisions on price are taken at centers higher than oil ministries back in the member countries.

When the ministers come to the meeting, the decisions are already made in their countries,” Zangeneh said.

Last week, Government Spokesman Mohammad-Baqer Nobakht said Iran has considered revenues from oil exports in the wake of removal of sanctions in order to draft next year’s budget as total production is scheduled to return to 2.5 million barrels per day.

He said 22 billion dollars out of the sum of 67-billion-dollar budget is forecast to be earned from oil exports and the rest via other income sources mainly from taxes.

According to the Ministry of Petroleum, it is possible to resume (crude oil) export by 500,000 barrels per day and take back our lost quota by year end (20 March). Next year, it can further increase to one million barrels while the neighboring countries are using our share,” Nobakht told a weekly press conference.

(Source: Shana)

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