Iran Cuts Spending Again For 2015-16, But Is It Enough?

Iran’s freshly-released draft 2015-16 budget cuts spending by 14% in real terms in the face of oil prices that are down by $48/B since June. This comes on top of a 20% cut for 2014-15. The latest budget is based on $72/B crude, down from $100/B.

Average export prices for Iran Heavy crude have fallen by a whopping $48/B or 45% from the peak of $107.5/B they hit in June. Meanwhile sanctions continue to constrain export...