'Higher oil prices to affect prices for petrochemical raw materials'

A rise in oil prices due to Iran's threat to stop oil supplies to the EU will reduce demand and cause damage to EU countries' economies, the general director of the Turkish Petrochemical Holding Petkim, Hayati Ozturk said in an interview with the Anadolu agency.

"Higher oil prices will also increase prices for petrochemical raw materials," Mr Ozturk said.

He said in the case of an oil supply deficit, Saudi Arabia will increase exports which will create a balance in the world oil market.

Yesterday Iran informed the ambassadors of West Europe about its intention to "reconsider its position" on oil supply to six EU countries.

The ambassadors of France, Spain, Italy, Greece, Portugal and the Netherlands were summoned to the Iranian Foreign Ministry where they received the relevant notification.
On Jan.23, 2012, foreign ministers of the EU countries decided to fully stop importing Iranian oil. This decision envisages a ban on signing new and extending existing contracts. However contracts signed earlier still remain in force. A full embargo is supposed to be introduced by 1 July, by which time all existing contracts should be terminated. The EU imports about 20 per cent of Iranian oil which is mostly transported to southern countries of the Union, namely Italy, Spain and Greece.

In early February, Iranian Oil Minister Rostam Ghasemi said Tehran will stop its oil exports to several European countries against a background of new economic restrictions. Moreover, Tehran will stop supplies by not waiting for July 1.


/Trend/