Iran hopes to boost oil prices to more than US $ 50 in 2017

THE IRANIAN PRESIDENT HASSAN ROHANI (CREDITS: © REUTERS PHOTOGRAPHER / REUTER)

Iranian President Hassan Rohani presented Sunday to Parliament his budget for the year starting in March 2017, relying on a barrel of oil to more than 50 dollars against 40 dollars in the current budget.

With this price, oil revenues for 2017-2018 are estimated at about $ 33 billion.

Authorization to increase production

Gold prices have surpassed $ 50 since the November 30 agreement of the Organization of Petroleum Exporting Countries (OPEC) countries, which have decided to cut production by 1.2 million barrels per day / J) beginning in January.

President Rohani said in his speech to the deputies that Iran's oil production, which "was 2.7 mb / d" before the lifting of international sanctions last January, reached "3.8 mbd" in September.

Under the OPEC agreement, Iran has been allowed to increase production by 90,000 barrels per day by 2017 

Exchange rate

In addition, the official exchange rate of the Iranian currency was set at 33,000 rials for one dollar against 29,970 in the current budget.

But for several weeks now, there has been a sharp devaluation of the rial against the dollar on the free market where a dollar is worth 39,500 rials, a decrease of nearly 10%.

The decision by the US Congress to extend the US sanctions against Iran for 10 years, as well as the choice by US president Donald Trump of future ministers opposed to the nuclear agreement between that country and the great powers, caused the plunge Of the rial against the dollar, analysts said.

President Barack Obama is due to sign the sanctions law passed by Congress in the coming days.

This vote is "a clear violation of the nuclear agreement" according to President Rohani. If Barack Obama "signs this law, it will be contrary to US commitments and we will react," he added, citing recent warnings from other Iranian leaders, including Supreme Leader Ali Khamenei.

The draft budget is presented within six months of the May 2017 presidential election in which President Rohani is expected to stand for a second four-year term.

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