Logo
Friday, 29 March 2024
Monday, 28 Oct 2019 02:21 pm

Iran would need oil at $195 a barrel next year to balance budget: IMF

A major reason for this are the new sanctions imposed by Washington in 2018

Hurt by tighter U.S. sanctions, Iran - a key member of the Organization of the Petroleum Exporting Countries (OPEC) - is expected to have a fiscal deficit of 4.5% this year and 5.1% next year, the International Monetary Fund said in a report on Monday.

On Friday, international benchmark Brent crude closed trading at just above $62 a barrel.

Iran saw its oil revenues surge after a 2015 nuclear pact agreed with six major powers ended a sanctions regime imposed three years earlier over its disputed nuclear program.

But new sanctions brought in after U.S. President Donald Trump withdrew from that deal in 2018 are the most painful imposed by Washington.

Iran’s economy is expected to shrink by 9.5% this year, compared to a prior estimate of a 6% contraction, the IMF has said, but real gross domestic product (GDP) growth is expected to be flat next year.

“The estimate is that ... sanctions that were reintroduced last year and tightened this year, next year will not have an additional impact,” Jihad Azour, director of the IMF’s Middle East and Central Asia Department, told Reuters.

The IMF forecast Iran’s exports of goods and services to drop to $60.3 billion this year from $103.2 billion last year, and to fall further to $55.5 billion in 2020.

Read More


Meeta Ramnani

Meeta develops credible content about various markets based on deep research, opinions from experts and inputs from industry leaders. As the managing editor at Smart Market News, she assures that every piece of news and article adds to the knowledge of decision makers. An avid bike rider, Meeta, is a postgraduate from Indian Institute of Journalism and New Media (IIJNM) Bangalore, where her specialization was Business Journalism. She carries experience from mainstream print media including The Times Group and Sakal Media Group.


Smarter Decisions with Smart News

Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.

Subscribe to our newsletter
Get the latest in your inbox weekly Sign up for the fully charged newsletter
© The News and Media Division of The Insight Partners 2024 | All Rights Reserved | Privacy Policy