Iran economy threatened by drop in oil prices – Majlis

Iran Focus: Tehran, Iran, Nov. 14 – Iran’s hard-line dominated Majlis, or Parliament, said that an oil price band of between 40 and 50 dollars a barrel should be set by the budget bill for the next Iranian calendar year beginning March 21.

Iran Focus

Tehran, Iran, Nov. 14 – Iran’s hard-line dominated Majlis, or Parliament, said that an oil price band of between 40 and 50 dollars a barrel should be set by the budget bill for the next Iranian calendar year beginning March 21.

“The world financial crisis and recent developments in the world's energy supply and demand has considerably decreased oil prices in global markets”, Ali Adyani-Rad, the Rapporteur of the Majlis Energy Commission, said on Tuesday.

"We must try to predict energy market fluctuations in order to reduce our vulnerability” said Adyani-Rad.

Crude oil income accounts for 80 percent of Iran's revenues.

Ramin Pashaifam, the vice-president of the Central Bank of Iran (CBI), warned recently that the economy will face major problem if oil prices fall below 60 dollars a barrel. Other economic analysts say that Iran would be left with a budget deficit next year if oil prices remain below 90 dollars a barrel.

Crude oil prices have fallen sharply over the past three months from a record high of $147 to less than $55 per barrel.