Iran's sanction pain is just beginning. Oil revenue in the Islamic Republic may have fallen by nearly one third, or $35 billion, on the back of a slowdown in exports and declining prices. With U.S. sanctions set to tighten and China's apparent readiness to go along, Tehran's budget could be thrown deep into the red.
Sanctions are squeezing hard. The harshest of the U.S. and European measures don't formerly kick in until the end of the month yet crude oil exports have already fallen to 1.5 million barrels per day (bpd), according to industry sources, compared to 2.5 million bpd last year.
With an average price of Brent crude for the year to date at $121, Iran might generate $67 billion of oil revenue this year with the current level of exports, compared to an estimate of more than $100 billion last year.
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