Tehran: Iran needs oil to average $60.60 (Dh223) a barrel until March, the end of the current Iranian year, to avoid "big problems" in its economy, Iranian media reported on Monday.
International oil prices have been slashed in half amid a world financial crisis since hitting a record of $147 a barrel in July. Yesterday, US crude traded at about $69 a barrel.
"If the price of a barrel of oil in the five remaining months of the current year stays at an average of $60.60 a barrel, we can pass this crisis soundly," the deputy central bank governor for economic affairs, Ramin Pashaei, said.
Pashaei was also quoted as saying that "our economy will face big problems with any further drop" below $60.60 a barrel.
His comments came from a report by the Iranian news agency ISNA, which was also published in Sarmayeh newspaper on Monday.
Pashaei did not say what the problems would be but economists say falling prices could put pressure on government spending plans and push the current account into deficit.
The economy is likely to be a major battleground in next year's presidential election. President Mahmoud Ahmadinejad is expected to run again and is already under fire from his critics for surging inflation and squandering Iran's oil windfall.
Facing deficit
The International Monetary Fund said in a report in August that if the price of Iranian crude fell to $75 a barrel, Iran would face a current account deficit in the medium term that would be tough to sustain due to Tehran's financial isolation.
Iranian crude tends to trade a few dollars below lighter, US oil. Pashaei did not specify if his figure of $60.60 a barrel was for international or Iranian oil.
Other economists have said Iran needs oil at around $70 to $75 to balance its books. Some say it needs much more.
At a price of $60.60 a barrel for the rest of the Iranian year, Iran could not add anything to reserves, Pashaei said.
