P.A. Turkey

Video Commentary:  Turkey’s Energy Shortage Reaches Critical Point

Turkey’s Energy Shortage Reaches Critical Point

Most Developing Nations, even some Developed ones are experiencing to produce and distribute affordable energy to industry and households, because of a relentless energy rally and tightness in oil and natural gas supply. Yet, Turkey stands out among the few, where rationing of NG to industrial users and blackouts for consumers may be around the corner. If the Ukraine Crisis results in Western sanctions for Russia, energy prices could extend on the current rally for most of 2022. Any scenario which entails higher energy prices for the rest of the year threatens the government’s goal of producing an external surplus to prop up the Turkish Lira. The shortage also threatens higher inflation and rising political discontent with the Erdogan regime.

 

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