Turkey has reduced its import of Russian Urals oil to the lowest level since the beginning of the year due to rising prices and competitive demand in Asian markets.
According to Reuters, in May Turkey imported about 161,000 barrels of Urals per day, which is a decrease compared to previous months. From January to April, this figure averaged 189,000 barrels per day, and in May 2022, it was 302,000 barrels. Ankara, accustomed to cheaper Urals supplies, is not ready to pay current global oil prices.
This move by Turkey is explained by the reduction of oil supplies from the Persian Gulf countries, leading to a sharp increase in global crude oil prices. The demand for Urals in Asia, particularly in India, is expected to remain high, influencing Turkey’s decision.
To offset the decrease in Urals imports, Turkey has increased purchases of Caspian oil, specifically the CPC Blend variety.
Asian oil markets are witnessing the achievement of minimum operational reserves, and a similar situation may arise in Europe, and by July in the US. This context emphasizes the importance of balancing supplies globally to avoid a sharp spike in prices.
| Period | Urals Import (barrels per day) |
|---|---|
| January-April 2023 | 189,000 |
| May 2023 | 161,000 |
| May 2022 | 302,000 |
