By Micah Halpern
I've Been Thinking:
Since June oil prices have fallen more than 40% to under $70 per barrel.
OPEC has decided to keep output the same and not play with the supply or demand side of the price curve.
Iran is very upset.
The Iranians submitted their budget for next year and they are reducing their expectation of oil profits. They are relying on less oil profits because of the drop in price. As a result, less of their budget will be oil based. Oil sale profits will be less substantial for Iran.
Iranian leader Hassan Rouhani explained that the new budget, especially in issues of national infrastructure, will receive significantly less capital from oil profits.
Rouhani told his cabinet that the cause was "conspiracy against the interests of the region, the Muslim people and the Muslim world."
He was referring to many groups - but his primary target was Saudi Arabia which was the most significant force within OPEC making certain that oil output did not dip.
Micah@MicahHalpern.com
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