Oil prices fell after the announcement of the launch of TANAP

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Oil prices are fluctuating at the moment with around $ 76.4 per barrel, continuing to win back the news about the changes to the production of hydrocarbons. Wednesday will be a rather controversial bidding process, in comparison with the previous session, the market will be during the day, to rise and fall, but end of the day acquire a negative background.
The focus of attention of the market in the short term, there will be continued growth in reserves and statistical data for the maintenance of the agreements of the transaction OPEC+. In addition, the beginning of the week was marked by the state holiday – Day of Russia, so market news from Monday and Tuesday will affect the remaining three days short working week.
The most serious of fluctuations in hydrocarbon prices was the news about the launch of the TRANS-Anatolian gas pipeline (TANAP) on June 12. Azerbaijani gas in 2020 will go to Italy via Georgia, Turkey, Greece, Albania. Now began the delivery in Turkey, Georgia is already connected.
The project “southern gas corridor” (without Russian participation) provides for the transportation of 10 billion cubic meters of Azerbaijani gas, of which Turkey 6 reserves themselves. The rest will remain 4, but the pipeline capacity does not allow to increase the supply without expanding infrastructure and construction of new branches and fields under the export does not have sufficiently large reserves.
So the news will affect prices in the short term, the corridor values goes below 1.5-2 dollars, and will create an opportunity for Erdogan to cheap energy, but in global terms quotes will quickly return to the usual statistics – reserves, production, OPEC deal+, the duties and working of the refinery.
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Nikolay Shiryaev
Expert
“International financial center”