Foreign exchange rate prevents oil price changes

The effectS of the decrease in oil prices on the economic fundamentals of Turkey, which imports large quantities of energy resources, are being discussed by policymakers and experts with the barrel price of crude oil on the decline since June. Crude oil prices fell to their lowest point in the last four years, $88.06 (TL 199.41), last Friday as a result of the increase in supply and the strengthening of the dollar.

Speaking to Anadolu Agency (AA) the General Secretary of the Oil Industry Association (Petder), Niyazi İlter, underlined the fact that the foreign exchange rate is extremely crucial in order for the decline in the prices of oil products to also lower oil prices in Turkey. "Even if oil products and crude oil prices decrease, the increase in foreign exchange rates is ruling out this decrease. We cannot expect any change if one is decreasing but the other one is increasing," said İlter. He further noted that there are many unknown factors affecting oil prices and the supply and demand balance that will be formed when the prices fall is important. "If there is no increase in demand, then the price of oil products will fall," said İlter, adding that if foreign exchange rates do not change, a drop in prices can be expected.