A month ago my pastor was telling me about a baptist preacher that claimed to be working as a chaplain to oil men in Alaska. He was even allowed insider information on the big companies. Sounds far fetched....but he was told that the American oil companies were going to dump a load of cheap oil on the market and drive gas prices down as part of an economic war with Iran.
Well gas prices are dropping...Open is getting upset and trying to raise the prices back up and I saw in the news today a news about Iran facing an economic storm
http://news.bbc.co.uk/1/hi/world/mid...st/7687107.stm
The maths is simple. For every dollar on the price of a barrel of oil, Iran earns approximately a billion dollars a year.
In the past few weeks and months, the price of Iranian oil has dropped between $50 and $60 a barrel.
The head of the Central Bank of Iran has warned that revenues could be cut by $54bn, effectively halving the country's income from oil, which accounts for the vast majority of both its export earnings and government revenue.
Petropars, a subsidiary of the National Iranian Oil Company (NOIC), has even warned that it could go into bankruptcy.
As the effect of those lower oil prices works through, Iran will face a growing budget deficit. The International Monetary Fund said in August that Iran would face unsustainable deficits should prices for its oil fall below $75 a barrel.
Mr Ahmadinejad will have the choice of cutting spending or printing more money. But with inflation already over 25% and unemployment around 10%, neither is an attractive option.
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