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Tehran calls for oil market 'realities'

Oct. 4, 2012 at 6:56 AM   |   Comments

TEHRAN, Oct. 4 (UPI) -- Iran may find itself in an ideal political situation once oil markets are based on the "realities" of the global economy, Iran's president said.

Iranian President Mahmoud Ahmadinejad blamed sanctions imposed by Western governments for a currency crisis in his country. The rial collapsed this week, reaching a historic low compared to the U.S. dollar.

Ahmadinejad said oil prices on the international market fluctuate in part because of reasons outside the physical market.

"Surely when oil gets rid of political domination and its price is determined based on realities of world economy and far from political interference, it would be possible to do business based on an ideal supply and demand system that will be in our interest," he was quoted by the Oil Ministry's website SHANA as saying.

Oil prices declined this week in part because of weak economic data from China and trouble in the eurozone. Prices peaked early this year in response to Iranian threats to close the Strait of Hormuz, a conduit for about 20 percent of the world's maritime oil shipments.

Ahmadinejad said his government would push ahead with its current revenue strategy without a budget deficit.

"We have set priorities on the one hand and have reduced expenditures on the other hand in order not to face any deficit," he said.

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