Iran Budget Faces Short-Term Oil-Price Strain, Rouhani Says - Bloomberg

Iran Budget Faces Short-Term Oil-Price Strain, Rouhani Says - Bloomberg:



"Iran expects oil prices at five-year lows will put “short-term pressure” on the government’s budget even as it strives to contain inflation, President Hassan Rouhani said.



Crude prices have declined about 40 percent from a June peak amid overproduction and slower demand growth. The Organization of Petroleum Exporting Countries decided on Nov. 27 to maintain its production target, prompting a drop in European benchmark Brent crude to less than $70 a barrel for the first time since May 2010.



“The price of Brent has fallen from $110 to less than $70, a decline little before seen,” Rouhani said yesterday in a speech to the country’s parliament in Tehran, according to the semi-official Iranian Students’ News Agency. “It’s necessary for next year’s budget to be adjusted with caution.”"



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