Seems that Iran will be more difficult to plunder into bankruptcy than what the NWO Elites had hoped for as Iran now bases its new budget on a lower price per barrel of oil. There is also news that Iran has struck a deal with China to allow that nation to explore a region in Iran for oil exploration. Not to mention the fact that Iran together with Syria is making attempts to draw in the other OPEC nations to colaesc with regard to the Palestinian situation in Israel.
Iran bases budget on oil price of $37.5
Sunday, 18 January 2009
TEHRAN (AFP) — The Iranian government has based its budget bill for 2009-10 on an oil price of 37.5 dollars per barrel, the semi-official news agency ILNA reported on Sunday.
"In the final version of the budget bill of the next (Iranian) year the oil price was envisaged at 37.5 dollars per barrel," a presidential aide for planning, Mohammad Ghasem Hosseini, was quoted as saying.
The government is due to submit the budget of the next Iranian year that starts on March 21 to parliament for final approval next week.
The government is obliged to save extra income beyond the budget base price in the Oil Stabilisation Fund, which is used to support macro energy projects and prop up private sector projects.
President Mahmoud Ahmadinejad's extravagant withdrawals from the fund for construction projects have, however been criticised by economists who are concerned about the falling oil price and predict a budget deficit.
Iran, OPEC's second-biggest crude exporter, is highly dependent on oil money, which is its primary source of income.
The managing director of the National Iranian Oil Company, Seifollah Jashnsaz, has put the country's average oil production at 4.05 million bpd, with an average sale of 2.35 million bpd, the ministry's news web site reported.
Crude income accounts for 80 percent of foreign earnings, making the government-run economy highly vulnerable to oil price shifts in particular in the face of the drastic crude price fall of 2008.
Oil prices surged to record highs in July of close to 150 dollars a barrel. But the price has since plunged to below 40 dollars.
According to the International Monetary Fund report of 2008, Iran would face an "unsustainable current account deficit" in mid-term if the oil price fell below 75 dollars per barrel.
|Iran leader denounces Arab 'traitors' in Gaza crisis|
In a letter to Saudi King Abdullah on Thursday Iranian President Mahmoud Ahmadinejad accused some Arab and Islamic states of complicity in "genocide" being carried out against Palestinians in Gaza.
Iran and China sign oilfield development contract
|Wednesday, 14 January 2009|
TEHRAN (AFP) — Iran and China on Wednesday signed a 1.76 billion dollar contract for the initial development of the North Azadegan oil field in western Iran, an Iranian oil ministry official said.
The agreement between China National Petroleum Corporation (CNPC) and the National Iranian Oil Company (NIOC) foresees production from the field reaching 75,000 barrels a day in four years' time, the official said.
If that timetable is maintained, Iran may award CNPC the contract for the second phase, when production is scheduled to double.
The north Azadegan field is in Khuzestan province on the border with Iraq and has reserves of about six billion barrels of oil.
Western oil companies have refused to invest in Iran because of the controversy over its nuclear energy programme and Tehran has increasingly turned to Asian companies.
Outline agreements have been signed with several Asian companies but the deal between CNPC and NIOC is the first major oil sector contract finalised in recent years.
CNPC this month began work on developing the Al-Ahdab oil field in Iraq following the signing of a three billon dollar contract.
The Saudi king has strong words for Israel...
King Abdullah sought to absorb popular anger directed at the so-called moderate Arab states, which have been accused of failing to do enough to halt the Israeli offensive...
At the conference in Kuwait, even leaders of Arab states friendly to the U.S. lashed out at Israel for using excessive force....
Syrian President Bashar Assad, speaking at the conference, urged Arab states to adopt a resolution labeling Israel "a terrorist entity."
Ahmadinejad said, "The people of Iran will side [with] the Palestinian people and government to the end," according to the semi-official Fars News Agency.