TEHRAN: Hassan Rouhani, Iranian President said 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.
Rouhani said as oil plunged to near six year lows on international markets, those that have planned to decrease the prices against other countries will regret this decision.
Oil prices have fallen 60 per cent from their June 2014 peaks, driven down by rising production, particularly of US shale oil, and weaker than expected demand in Europe and Asia.
Iran described Saudi Arabia’s inaction in the face of the six month price slide as a strategic mistake, but hoped that the kingdom.
In 2013, oil accounted for roughly 90 per cent of Saudi Arabia’s overall budget income and Kuwait at 92 per cent.
The United Arab Emirates energy minister said that the Organization of the Petroleum Exporting Countries (OPEC) would not cut output to support prices.
Rouhani said that Kuwait and Saudi Arabia’s budget dependency on oil exports. He added Saudi Arabia’s 80 per cent of budget is based on oil sales, while in Kuwait the figure stands at 95 per cent.
Iran had adjusted to the drop in exports due to higher oil prices, but that buffer no longer remains today.
Saudi Arabia and other wealthy Gulf Arab countries have accumulated hundreds of billions of dollars of reserves due to high oil prices over the years.
