Government barters with crude oil

barter crude oil

The Parliament has approved the budget bill for the next Iranian fiscal year, 1399. The budget assumes certain points that makes its credibility questionable. It forecasts to sell one million barrel of crude oil per day and the average price for it has been considered 50 USD per barrel. For the current year, the budget bill had assumed to sell 1.5 million barrel of crude oil per day but in reality, the return of sanctions has made it very difficult to reach the goal.

Additionally, the Government has reserved the right to itself to clear its debts with its contractors by bartering with crude oil.

While selling the crude oil for the Government becomes harder and harder, it tries to pass the commodity to the private sector, so that they might be able to sell it outside Iran. A method which was used during the previous period of sanctions in 2009 and eventually led to lots of corruption.

Related article: Iran offers petroleum at Energy Bourse