Energy Shortages In Iran Herald More Bad Economic News – ایران اینترنشنال

by | Dec 24, 2022 | Financial

Government has cut off gas to 840 government and public entities, Iran’s Tasnim news reported Saturday, as consumption outpaces production.The news might sound shocking for a country that has the second largest natural gas reserves in the world, but it has been long clear that production is falling with lack of investments and Western technology. This means many factories and steel as well as petrochemical plants stopping production, which will deal a severe blow to an economy in crisis.Equally shocking was news this week, published by Tejarat (Commerce) newspaper in Tehran, that some Iranian oil experts believe the government is selling oil at just $37 per barrel amid US sanctions. This is only $7 more than the production cost for Iran, which might explain why the government is facing a serious financial crisis.As the year comes to a close, the Iranian currency, rial, has been shattering low records against major currencies. On Thursday, the rial fell to 400,000 against the US dollar and the fall continued Saturday in a sign that the Islamic Republic, grappling with antigovernment protests, is unable to support its currency.As international oil industry watchers believe Iran is selling around 700,000 barrels of oil per day, it is puzzling as to why it is in deep financial trouble, even unable to import sufficient medicines in the past few months.The estimate that Iran is shipping crude for just $37 a barrel is piece …

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