Monday, January 12, 2015

Oil Prices Fall to Fresh Lows

Global benchmark Brent today dropped by nearly 6% to $47.23, lowest since March 2009. U.S. crude oil was at $45.90, also lowest in nearly six years. The drastically falling market is creating serious financial problems for oil producing countries, including Iran, whose national budget according to IMF and Deutche Bank is currently based on $131 oil.


Mark Pyruz said...

On 17DEC14, this is what IRIN Rear Admiral Ali Shamkhani, secretary of the Supreme National Security Council, stated in an interview for the Financial Times:

“Iran and Saudi Arabia are involved in the oil war. Saudis have lost $100 billion in the oil war so far, far bigger than Iran’s losses.”

“The pressure [from declining crude oil prices] is not bad. We have a loose tooth called dependence on oil. Whoever can help us take out this tooth will do us a favor.”

When asked about the potential impact of falling oil revenues upon Iran’s regional policies, Shamkiri replied:

“Why should it have an impact? These [sanctions and shrinking oil income] cannot have a determining impact.”

Anonymous said...

I hear this comment all the time "... dependence on oil should stop".Iran IS dependant on oil revenue period. So the sooner this fantasy about Iran being some idustrial power that is clearly it isn't should stop. The people in power in Iran today have created a religious based society that doesn't allow normal activity to prosper.For Iran to industrialize it needs a large educated working and middle class without all the nonsense that it is bombarded with by the religious classes.Iran hasn't the modern insitutions without interference by a handful religious bigots.This is the problem that todays Iran is stuck in. Sorry about the bad news.

Anonymous said...

In all fairness, Iran is a large diversified and industrialized economy and will easily outlast the Saudis who have to give massive subsidies to keep a restless population in check and also pay off the useless western weaponry being dumped on them. Iranians by nature are industrious people and very adaptable and this may kick start a whole boom in small and cottage industry. Iranians in the post revolutionary days and then imposed war for 8 years lived in far worse times. The current situation looks like a picnic compared to that. Iran today has many friends and trading partners.

Iran just about produces anything and with increased integration with Asian economies, the low price of oil may not be a bad thing for Iran, but a blessing in disguise.

Anonymous said...

Anon 1:09 AM

The post revolutioary times was a different period in history.Iranians are not willing to go through that again.Also subsidies put on some food stuffs in Iran as well as given to poorer regime supporters.Iran produces less goods today when compared to the past.Most of goods imported from China,Turkey,India and Russia.We don't even make shoes anymore because factories have been closed down.Cheaper for criminal IRGC ("blessing in disguise") to make more money through imports like shovels and even Chinese printed qurans.

Anonymous said...

that's nonsense. Iran's economy is not at all diversified. Iran exports little except pistachios, and oil and gas.

it's also utter nonsense that Iran could possibly outlast the Saudis. the Saudis are selling many times as much oil as Iran and has far, far fewer mouths to feed.

you're simply making up stuff and telling lies.

Anonymous said...

Anon 10:07 PM

Even pistachio exports have been hit hard.Once upon a time every pistachio came from Iran but now most comes from the USA.This regime has destroyed Iranian industry. You are correct about Saudis because their population is roughly about thirty million.