Iran's Oil Minister Highlights Political Reasons behind Oil Price Decline

Iran's Oil Minister Highlights Political Reasons behind Oil Price Decline

TEHRAN (Tasnim) – Iran’s oil minister said political reasons have played a key role in the continued declined of global oil price, adding that the US and its allies are trying to deal a blow to the Iranian and Russian economy using the low oil price.

Speaking to Islamic Republic of Iran News Network (IRINN), Bijan Namdar Zanganeh said political factors have "undoubtedly" had a role in the oil price slump, but underlined that “market fundamentals” (supply and demand) were the main reasons behind the global decline in prices.

US President Barack Obama has recently acknowledged that “political will” has been behind a decline in the oil prices, he added.

“In this regard, he (Obama) announced that Russia’ economic growth has faced a crisis following the decline in the oil price and that the US was able to exert pressure on the country (Russia) over Crimea and Ukraine using the policy (oil price decline),” Zanganeh added.

“We think the US and its allies also had the intention to deal a blow to Iran,” Zanganeh underlined.

Over the past seven months, the oil prices have fallen about 50 percent due to a glut of supplies by certain countries such as Saudi Arabia.

In October 2014, Supreme Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei called for formulation of necessary plans to cut Iran’s dependence on oil revenues and govern the country on the basis of domestic capabilities instead of natural resources.

Iran’s new administration, which took office in August 2013, has voiced determination to increase the volume of non-oil exports as a determining factor in countering economic stagnation in the country.

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