Turkey Could Increase Oil Imports from Iran

Posted: Tuesday, November 26, 2013

Turkey could increase its oil imports from Iran after the Islamic Republic signed a deal with major world powers to curb its nuclear program, paving the way for more crude oil to reach the global market, Energy Minister Taner Yildiz said Monday.

"We are buying natural gas from five countries and oil from 12 countries. With easing on sanctions, I think oil purchases [from Iran ] can go up to 130,000-140,000 barrels per day [from around 105,000 barrels per day]" Mr. Yildiz told Turkish TV channel CNBCe.

The deal calls for Tehran to curb central parts of its nuclear program in exchange for a rollback of economic sanctions. Iran agreed to freeze its production of near-weapons grade fuel-which is uranium enriched to 20% purity-and to remove its stockpile of the fissile material.

Analysts said the agreement is positive news for Turkey as it is highly dependent on energy imports.

"The deal is important for Turkey 's economy with respect to the diminished risk of war in the region, oil prices, and gold exports," said Ibrahim Aksoy, chief economist with Istanbul-based Gedik Investment. "The main impact of the nuclear deal on Turkey 's economy will be lower oil prices as the country has an important energy trade deficit, 6.6% of gross domestic product."

(Dow Jones)