Tupras Rises 2nd Day on U.S. Exemption for Iran: Istanbul Mover

Tupras Turkiye Petrol Rafinerileri AS (TUPRS), Turkey’s only oil refiner, rose for a second day after the U.S. said Turkey was among nations that would be exempt from sanctions for buying Iranian oil.

The shares jumped 2.7 percent to 37.70 liras at the close in Istanbul, the highest level since April 17.

India, South Korea, Turkey, South Africa, Malaysia, Sri Lanka and Taiwan will not be penalized by the U.S. for continuing to import oil from Iran over the next six months because they have proven they “have all significantly reduced” the volume of oil they buy from Iran, Secretary of State Hillary Clinton said in a statement yesterday.

“We expect to see positive impact as the uncertainty ends,” Istanbul-based brokerage Global Securities said in a note sent to clients today. Turkiye Halk Bankasi AS (HALKB), which handles the payments for Iranian oil, may also benefit, Global said. Halkbank shares gained 1.2 percent to 13.10 liras.

Tupras said March 30 it would cut oil purchases from Iran by 20 percent as the U.S. stepped up pressure on the country for its nuclear program. A bilateral agreement allowed the company to buy crude at lower-than-market rates from Iran.

Under a U.S. law enacted Dec. 31, nations have until June 28 to demonstrate they have “significantly” cut the volume of their Iranian crude purchases. If they fail to do so, their banks that settle oil trades with Iran will be cut off from the U.S. financial system.

Turkey will buy crude oil from Saudi Arabia and Libya as it reduces oil imports from Iran, Energy Minister Taner Yildiz said in televised comments. Tupras is in talks with Saudi Arabia for long-term purchases, he said.

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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