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Thailand more worried about global oil price rise than with oil shortage

Written by World Events

The Thai Ministry of Energy is more concerned over the prospect of a spike in global oil prices than oil supply disruption due to Israeli-Hamas war, according to Energy Permanent Secretary Prasert Sinsukprasert.

He said the ministry is closely monitoring the war between Israel and Hamas, although the situation is unlikely to have direct impacts on Thailand’s oil imports.

He explained that Thailand imports about 57% of its crude oil demand from other Middle Eastern countries and 33% of liquified natural gas (LNG) from other sources.

He said, however, that the Energy Ministry and relevant agencies have taken precautionary steps, in case the war escalates, by making sure that there are sufficient oil reserves to last for about two months.

Currently, there are 3.91 billion litres of crude oil in reserve, plus an additional 1.637 billion litres on their way to Thailand and 2.18 billion litres of finished oil products.

Prasert noted, however, that the most worrisome issue, if the war drags on or escalates, is the global oil price, which may shoot up due to market sentiment because the Middle East is the world’s largest exporter of oil.

He offered an assurance that the Energy Ministry will continue to ease the financial burden on consumers from the effects of oil prices, as he pleaded with consumers to use fuel sparingly during this critical period.

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