Iran Economy NewsIran: $194.60 per Barrel of Oil Needed to Balance...

Iran: $194.60 per Barrel of Oil Needed to Balance the Budget Next Year

-

Iran oil crisis

By Jubin Katiraie

The International Monetary Fund (IMF) on Monday came out with its breakeven analysis for crude prices and Iran. The global organization cited that sanctions on Iran have weighed such that Iran would need oil prices rallying to $194.60 to balance its budget next year. 

On Friday, international benchmark Brent crude closed trading at just above $62 a barrel.  

Iran’s economy is expected to shrink by 9.5% this year, compared to a prior estimate of a 6% contraction, the IMF has said, but real gross domestic product (GDP) growth is expected to be flat next year.  

A drop in the Iranian currency following the imposition of sanctions has disrupted Iran’s foreign trade and boosted annual inflation, which the IMF forecasts at 35.7% this year and 31% next year.  

The IMF forecast Iran’s exports of goods and services to drop to $60.3 billion this year from $103.2 billion last year and to fall further to $55.5 billion in 2020.  

This is while Iran had exported about 300,000 barrels per day in the first three weeks of June, sources from the oil sector told Reuters. However, data from Refinitiv Eikon which monitors oil flows said that the Iranian crude oil shipments amounted to only about 240,000 barrels per day. 

 

Latest news

Iran’s Regime Inches Toward Nuclear Weapons

Iran’s regime is once again at the center of a dangerous escalation of the proliferation of nuclear weapons. A...

US Congress Expresses Support for Iranian People’s Quest for a Democratic, Secular Republic

Several bipartisan members of the U.S. House of Representatives have presented a resolution (H. RES. 100) supporting the Iranian...

Wave Of Poisoning Attacks Against Schools Leave Hundreds Sick

Iran has been shaken for three months by serial poisoning attacks against all-girls schools, which has left more than...

Iranian Security Forces Beat Baluch Doctor To Death

On Thursday, February 23, activists in Sistan and Baluchestan provinces reported the news of the death of Dr. Ebrahim...

World Powers Should Hear The Voice Of Iranians, Not Dictators And Their Remnants

Iran’s nationwide uprising continues despite its ups and down. The clerical system’s demise no longer seems a dream but...

The Rial Continues To Sink, Hits Record 500,000 Marks Against The Dollar

The US dollar increased in price by more than 11 percent in February and grew to more than 500,000...

Must read

Religious freedoms in Iran concern US State Department

Iran Focus: London, Nov. 09 – The United States...

Iran sets conditions for talks with U.S. on Iraq

Reuters: Iran will only hold direct talks with the...

You might also likeRELATED
Recommended to you