Iran has accused its Middle Eastern neighbours of conspiring with western powers to lower the price of oil, in a bid to hurt its sanction laden economy, according to news site Reuters.
With oil losing 25% of its value in the past 2 months, Iran is feeling the pinch. Under the terms of the Joint Plan of Action (JPoA) it is only allowed to export around 1 million barrels per day of crude.
Some members of the Iranian government have argued that the fall in the value of oil has been deliberately orchestrated to weaken its negotiating position at forthcoming nuclear talks.
“Some countries in the region are serving the interests of America and (other) arrogant powers in trying to squeeze the Islamic Republic.” Government spokesman Mohammad Baqer Nobakht said.
“They (the West) have forced our oil production from 4 million bpd to 1 million bpd, and this recent fall of oil prices is their latest gimmick,” he was quoted as saying by Mehr News.
As countries across the Middle East region look to increase their production levels, supply is outstripping demand, causing the value of oil to plummet. Iran relies on high oil prices to balance its domestic budget and some critics within the country are arguing that this tactic needs to change.
“We should not pin our hopes on high oil prices, but seek to compensate for falling revenues with bigger volumes of exports,” Abbas Ali Noura, an ex parliamentarian, was quoted as saying by Qods Online.
