Thailand assures 60-day oil reserve amid Middle East conflict

The Ministry of Energy assured the public that Thailand’s oil reserves are sufficient to last over 60 days amidst the escalating conflict in the Middle East. Measures are being taken to ensure stable oil prices despite the volatile situation.

Weerapat Kiatfuengfu, Deputy Permanent Secretary and spokesperson for the Ministry of Energy, stated that the ministry and relevant agencies are closely monitoring the expanding conflict in the Middle East, particularly the hostilities between Israel and Iran.

These tensions could disrupt oil production and exports from the region, causing crude oil prices to fluctuate and rise continuously. The ministry is prepared to use available mechanisms to mitigate the impact on domestic prices as much as possible, said Weerapat.

“We assure the public that the current fuel supply is more than adequate for domestic needs. Presently, there are approximately 3,365 million litres of crude oil in reserve, sufficient for 26 days of consumption.

“Additionally, there are 2,055 million litres of crude oil in transit, enough for another 16 days, and 2,414 million litres of refined oil, adequate for 20 days. This totals to reserves that can last for 62 days.”

The Ministry of Energy is committed to managing retail oil prices within the country to avoid severe fluctuations. The Oil Fuel Fund is the primary tool for this purpose. The fund’s liquidity has improved, with a reduction in its deficit, offering reassurance that Thailand will not face fuel shortages, and prices will remain relatively stable.

As of yesterday, the price of West Texas Intermediate (WTI) crude oil was recorded at US$74 per barrel, reflecting an increase of over 8% within one week, from US$68 per barrel on September 30, reported KhaoSod.

Earlier, the Ministry of Energy conducted emergency response drills in collaboration with all relevant sectors to establish measures and alleviate the potential impacts of an energy crisis. These proactive steps aim to minimise the effects of the ongoing conflict on the public.