Thailand’s oil reserves rise to 98 days, eyes Russian crude talks
Thailand says crude stockpiles have been expanded from 92 to 98 days as officials seek alternative supplies and consider Russian imports amid Middle East tensions.
- Thailand has increased its crude oil reserves from 92 days to a 98-day supply to enhance energy security.
- The country is preparing to enter into negotiations to purchase crude oil from Russia to make up for any potential shortages.
- This move is a response to potential supply disruptions, as 50% of Thailand's crude oil is currently imported from the Persian Gulf.
- The consideration of Russian oil is enabled by the United States lifting its boycott on Russian crude oil exports.
Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport, in his capacity as director of the Joint Management and Monitoring Centre for the Situation in the Middle East, briefed the media on the outcome of a meeting on the conflict in the Middle East, expressing confidence in Thailand’s energy security.
Speaking at Government House on March 13, he said Thailand had increased its crude oil reserves from 92 days to 98 days.
Phiphat said Thailand currently imports 50 per cent of its crude oil from the Persian Gulf via the Strait of Hormuz, while the other 50 per cent comes from outside the Gulf.
The government is therefore accelerating negotiations to purchase more oil from outside the Gulf to replace any possible shortfall from the Persian Gulf.
He added that another key development was the United States’ decision to lift its boycott of Russian crude oil exports.
The Ministry of Energy is now preparing to enter talks to buy crude oil from Russia to make up for any shortage and reassure the public that energy supplies in Thailand will not run short.
In addition to measures to secure oil supplies, Phiphat said the government was also overseeing diesel prices in line with instructions from Prime Minister Anutin Charnvirakul.
Diesel prices will remain capped until March 16, after which the relevant agencies will meet to consider the pricing direction again.
He also said there was a management plan to raise the biodiesel blend from B7 to B10, and it could later be expanded to B20 for lorries and pick-up trucks, in order to ensure confidence in the transport system and industry.
Phiphat acknowledged that the war had pushed global crude oil prices to nearly US$100 a barrel.
He said the government would have to allow prices to adjust gradually in line with market mechanisms, but insisted that it was working to the fullest extent to ease hardship for the public amid the ongoing conflict.
