Debate on low oil prices

We have been talking more than usual about Turkey’s energy policies and prices over the last few days. The primary reason is world oil prices that have been following a low course for some time, but another important factor is the new agreement reached between North Iraq and the Iraqi central administration.

Turkey, at the cost of clashing with the Iraqi central administration, has provided means for North Iraq to transport its oil to the world market, after a deal was struck with the North Iraq administration regarding oil and natural gas production fields. Turkey, by nature of siding between North Iraq and the Iraqi central administration, was in a difficult position.

The struggle against the Islamic State of Iraq and the Levent (ISIL) led by the United States brought with itself the reconciliation between North Iraq and the Iraqi central administration. The iciness between Turkey and the new Iraqi central administration was thawed when Prime Minister Ahmet Davutoğlu’s visited last week, and trust was restored with the North Iraq administration.

When these developments coincided with the Atlantic Council meetings last weekend attended by U.S. Vice President Joe Biden, energy suddenly became the number one topic on the country’s political and economic agenda.

Another point of discussion regarding energy and the economy is on how world oil prices falling to $80 per barrel would affect the equilibrium of the Turkish economy. This low point in world oil prices has begun to have a serious impact on the import-addicted Turkish economy, and the level and duration of this impact has become yet another talking point.

Meanwhile, last weekend, a statement on Turkey’s credit rating from international credit rating...

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