The recent OPEC decision not to slash production is a major setback to Iran’s fiscal health. Beset by sanctions, Iran’s most important source of revenue is under attack not by Israeli or American war planners but by market forces. The price of Brent crude, the benchmark, has sunk by 40 percent since June. North American production and Saudi Arabian insistence to maintain current levels of supply has led to a surplus of 1.5 to 2 million barrels a day. While the steep drop in oil prices is a blow to all exporters, the Arab countries of the Persian Gulf have sufficient cash reserves to weather the storm. Iran does not.
Iranian Oil - Amir Handjani
Iranian Oil - Amir Handjani
Iranian Oil - Amir Handjani
The recent OPEC decision not to slash production is a major setback to Iran’s fiscal health. Beset by sanctions, Iran’s most important source of revenue is under attack not by Israeli or American war planners but by market forces. The price of Brent crude, the benchmark, has sunk by 40 percent since June. North American production and Saudi Arabian insistence to maintain current levels of supply has led to a surplus of 1.5 to 2 million barrels a day. While the steep drop in oil prices is a blow to all exporters, the Arab countries of the Persian Gulf have sufficient cash reserves to weather the storm. Iran does not.