ID :
350387
Sun, 12/07/2014 - 12:31
Auther :

Iran must wean its economy off oil-based revenues: Daily

Tehran, Dec 7, IRNA - 'Iran Daily' on Sunday commenting on the plunge in oil prices in the global market said that Iran should spare no efforts to wean its economy off oil-based revenues. The English-language daily in its Opinion column was commenting on the 166th meeting of the Organization of Petroleum Exporting Countries (OPEC), which was held in Vienna, Austria, on November 27, which did not change oil output ceiling, despite the huge global oversupply. The 12 OPEC members agreed to maintain the ceiling of 30 million barrels per day, which only secures the interests of Saudi Arabia and its allies. Oil fell more than $6 to reach $72 a barrel, which marks a drastic decline since mid-June. As a result, OPEC members, whose budgets depend heavily on crude revenues, will have to face budget deficit pressures because the value of black gold has tumbled by $40 in five months. The OPEC decision has driven down oil prices, which poses a serious challenge to their economies, pointed out the paper. Consequently, Iran and some other OPEC members had to lower crude prices to maintain their global market share, it said. Nonetheless, a number of OPEC members announced that they are dissatisfied with the declining oil prices, noted the paper. Oil market analysts have predicted that OPEC members aim to undermine a boom in US shale oil production by reducing prices. They believe such an approach will harm the interests of OPEC members in the short run, but will benefit them in the long run. This is because it is not economical for the US to extract oil at low prices, which will drive its shale oil projects out of the market. However, despite such an analysis, the International Energy Organization has announced that the US can benefit from shale oil production even if prices fall to $42 per barrel. Hence, OPEC members will not only lose billions of dollars in revenues, but also fail to reach their goal, concluded the paper./end

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