Fall in oil prices political, not technical: Turkish energy minister
ANKARAJan 07, 2015 - 12:00 am GMT+3
Jan 07, 2015 12:00 am
Continuously low oil prices are as unsustainable as continuously high oil prices, Taner Yıldız, Turkey's Energy and Natural Resources Minister, said on Wednesday.
"The analysis of oil prices made by OECD, OPEC, International Energy Agency and IRENA last year could not predict the fall, which is a political issue, not a technical one," he said.
According to Yildiz, without dealing with the reasons behind the falling oil prices, countries will not be able create reasons for increasing them.
The price of Brent crude oil dipped below $50 per barrel, its lowest point since April 2009, according to official figures. The Brent price was $49.87 per barrel on Wednesday at 7:57 a.m. GMT. The global benchmark has been in steep decline since June 2014, when it was $115 per barrel.
"When political instability continues, the countries expected the oil price to be $135 but now we are talking about $50-$40 per barrel," Yıldız said.
"A stable and sustainable oil price is very important for Turkey. Six months ago, a 55-liter tank filled for 280 Turkish lira, whereas now the price is 236 lira. For diesel oil, the price fell from 247 lira to 207 lira," he added.
Commenting on importing natural gas from Israel to Europe, Yıldız said that, "It is a well-known fact that the feasible way to transfer Israeli natural gas to Europe is via Turkey, and natural gas traders both in Europe and Turkey are very well aware of that."
"Turkey has enough capacity to do business with Russia, China and the EU countries at the same time. Doing business with Russia does not mean that Turkey should stop negotiating with EU countries," Yıldız said.
"Putin's recent visit to Turkey and the suspension of the South Stream Project caused Turkey to pave the way for the improvement of relations between Turkey and the EU," he said.
On Dec. 1, 2014, Russian President Vladimir Putin paid an official state visit to Turkey, during which he announced the cancellation of the South Stream natural gas pipeline project.
The pipeline would have carried Russian gas across the Black Sea and into Europe via several Balkan nations, starting with Bulgaria. Instead, a new gas pipeline project has been proposed, which will carry gas through Turkey.
"A new pipeline project, which will be developed by Russia and Turkey seems like it will damage the prospect of the Trans Anatolian Natural Gas Pipeline project (TANAP). But it will not. Turkey and Azerbaijan will continue to work together on this project."
TANAP is expected to transport natural gas from the Azerbaijani Shah Deniz 2 field on the Caspian Sea, as well as other Azerbaijani fields, through Turkey to Europe.