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Is Turkey Buying Russian Oil Cheap?

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In June, imports from Russia exceeded $ 5 billion, breaking a record.

According to data from the Ministry of Commerce, Turkish imports from Russia reached 5 billion and 66 million dollars in June, an increase of 118.3 percent compared to the same month of the previous year, and reached an all-time high.

In the first six months of 2022, imports from Russia increased by 119.5 percent compared to the same period of the previous year, reaching 27.7 billion dollars.

While Turkey’s total imports in the first six months increased 40.6% annually to $ 177.2 billion, Russia’s share in total imports was 15.6%.

Turkey has not participated in the harsh sanctions imposed by NATO members and US-led NATO allies.

RUSSIA LEADS IN IMPORTS OF OIL AND NATURAL GAS

According to the news of Emre Deveci from Sözcü; EMRA data shows that Russia ranks first in oil and natural gas imports.

In April 2022, Russia’s share ranked first in Turkey’s natural gas imports with 46.28% and oil imports with 35.38%.

Russia generally ranks first in Turkey’s natural gas imports, but Iraq has long been the first in oil imports. Russia’s rise to the top spot in April is remarkable.

In April 2021, Russia ranked second in Turkey’s total oil imports with a share of 24.46%. Iraq’s share, which at the time was in first place with 29.41%, dropped to 27.55% in April 2022.

Oil imports from Russia, which were 874,000 tons in April 2021 and 803,000 tons in April 2022, increased to 1 million 391,000 tons in April 2022.

Imports of crude oil from Russia, which were 393,000 tons in April 2021 and 446,000 tons in February 2022, increased to 1.8 million tons in April 2022.

IS OIL ECONOMY?

Russia is known to sell Ural oil around $ 35 below the reference price of Brent oil. As a matter of fact, the rapid increase in oil imports from Russia by China and India due to oil discounting is often the order of the day.

In addition to these two countries, the increase in oil imports from Russia to Turkey has recently attracted the attention of international news agencies.

Japan’s Nikkei news agency wrote in its June 9 report that these three countries were the first to increase oil imports from Russia.

TURKEY IS AMONG THE HIGHEST INCREASED OIL IMPORTS

In the news based on the Refinitiv data, it was stated that between February 24, when the war in Ukraine began, and June 2, India increased its oil imports from Russia by about eight times, while the increase in China and Turkey was 70% and 54%. , respectively.

Giovanni Stanouvo, a commodities analyst at Swiss bank UBS, said India, China and Turkey will continue to buy Russian oil at current discount prices.

270,000 barrel days of crude oil

Bloomberg, the famous US-based financial agency, also pointed out in its June 20 report that Turkey was among the countries that increased its oil imports from Russia the most.

In the news, it was reported that Turkey’s daily crude oil imports from Russia rose to 270,000 barrels a day in the week of June 17, and this figure was around 150,000 barrels at the start of the year.

Experts suggest that refineries in Turkey buy oil from Russia at a discount, but increase their profits by selling the fuel they produce to the market at a higher international price.

Companies that import diesel and other petroleum products from Russia with a distribution license are also claimed to import at discounted prices, but also sell at international prices.

Recession concerns and crude oil prices

Oil production in Libya stopped

Oil prices continue to come under downward pressure


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