MP: Oil not just a source of forex revenue

Tehran, Jan 16, IRNA – First Secretary of the Majlis Energy Commission said oil should not be regarded a source to obtain currency but attention should be paid to its role in improving Iran’s status and its effectiveness in the oil market; therefore the scene should not be evacuated for political maneuvering of Saudi Arabia. Speaking to IRNA, Amir Abbas Soltani pointed to the motion forwarded to the Majlis for reduction of dependence on oil revenues and said oil production and sale for fetching hard currency and maintaining the budget is just one side of the issue; the most important point is that if under the present circumstances oil production and sale is lowered the OPEC market will be left vacant for competitors. He stressed that even if the dependence of the budget on oil revenues is over, with regard to Iran’s status and influence in OPEC and in the world due to its oil production the scene should not be emptied for the rivals. Soltani who is a Majlis deputy from Boroujen, Chaharmahal-Bakhtiari Province, further remarked that under circumstances even if there is no need for oil money the share of one million barrels or more should be preserved and oil exports should be continued with no retreat in this field. He noted: “If we turn our back to the oil market we will face budget deficit,” adding that currently the Foreign Exchange Reserve Fund does not possess a remarkable amount and there is need to increase revenues to add up to the 20% saving of the Fund in order to cope with the financial and economic problems. As for oil consultations between Tehran and Moscow he said given that both Russia and Iran are facing an emergency situation interaction with Moscow will be beneficial for Tehran. The parliamentarian noted that in the same way Saudi Arabia dropped the oil price in an attempt to put pressures on Iran and Russia, Tehran and Moscow as two big oil producers can use mutual understanding as a lever against enemy plots.