Thailand boosts oil reserves to last 95 days amid Middle East tensions

Thailand’s oil reserves have risen to a 95-day supply, up from 60 days, following additional procurement efforts by domestic traders, the Ministry of Energy confirmed on Thursday, March 6.

Oil traders have been directed to expedite deliveries to regions experiencing shortages, while a directive from the prime minister requires traders to gradually raise the legal reserve proportion from 1% to 3% to ensure long-term stability.

Veerapat Kiatfuengfoo, Deputy Permanent Secretary and Government spokesperson for the Ministry of Energy, said the increase was attributed to domestic traders sourcing additional supplies, with deliveries already confirmed and further procurement planned.

The ministry has also instructed the Department of Energy Business and provincial energy offices to carry out inspections to prevent hoarding and accelerate oil distribution to areas with shortfalls. Oil exports have been reduced, with exceptions for Laos and Myanmar, to maintain economic ties.

Meanwhile, the Middle East remains volatile, with ongoing exchanges between Israel, the United States, and Iran, with clashes spreading to neighbouring countries. Airspace closures are in effect across the UAE, Israel, Syria, Iran, Bahrain, Kuwait, and Qatar, while Saudi Arabia, Oman, and Jordan remain open.

Panidon Pachimsawat, acting Director-General of the Department of Information and Deputy Government spokesperson at the Ministry of Foreign Affairs, said there are no reports of Thai casualties. The ministry is urging Thais to leave high-risk areas and register their contact details with the relevant embassies and consulates.

Should the situation extend to May, the Ministry of Energy is considering alternative energy sources, including diesel, biodiesel, or B100 oil, to reduce import dependency. Importing Euro 4 oil is also being explored as a cheaper option.

To secure electricity production, the government is working to procure additional liquefied natural gas and increase natural gas output from the Gulf of Thailand, while diversifying supply through biomass and hydropower to prevent outages in residential and industrial areas.