Iranian President Hassan Rouhani said on Tuesday that countries behind the fall in global oil prices would regret their decision and warned that Saudi Arabia and Kuwait would suffer alongside Iran from the price drop.
“Those that have planned to decrease the prices against other countries will regret this decision,” Rouhani said in a speech broadcast on state television as oil plunged to near six year lows on international markets.
On the other hand, only one-third of Iran’s budget is based on oil sales, with an estimated 60 percent of the country’s exports tied to oil, Rouhani said.
Due to Western sanctions on Iran over its nuclear programme, Iran’s oil exports have dropped from 2.5 million barrels a day in 2011 to about 1 million barrels per day on average, according to the U.S. Energy Information Administration (EIA).
Iran had adjusted to the drop in exports due to higher oil prices, but that buffer no longer remains today.
The United Arab Emirates energy minister repeated on Tuesday that the Organization of the Petroleum Exporting Countries (OPEC) would not cut output to support prices.
Saudi authorities appear confident they can ride out the market slide, with state spending set to hit a record this year.