PTT turns to oil stock management as prices plunge

By The Nation

 

Chansin Treenuchagron, PTT President and Chief Executive Officer

 

PTT is accelerating oil stock management after a 30 per cent price plunge in the global market while expecting the situation to be short-lived. 

 

Chansin Treenuchagron, President and Chief Executive Officer, said prices dived in the world market after Saudi Arabia announced an increase in production capacity and cut prices in the Asian region.

 

“Saudi Arabia’s move was triggered by a disagreement between Opec and its partner Russia, which had refused to cut its production capacity by 2 per cent or 1.5 million barrel per day to maintain oil prices,” he said.

 

He expected the situation to last just a short period because the world was currently faced with various negative factors, especially the Covid-19 outbreak which caused a decline in oil demand.

 

“The decline in demand was also due to the prolonged US-China trade war which led to global stock sales,” he said. “The same situation occurred during 2014-2015 when speculators withdrew money from oil stocks and turned to safe-haven assets”.

 

He believe that if crude oil prices fell to $30-40 per barrel, oil-reliant countries in the Middle East and Shell, the oil producer with production cost around $40-60 per barrel, would be affected. 

 

“The current economic recession indicates that the world has been under pressure from Covid-19 outbreak,” he said. “However, we believe that it would come under control between three months to one year.”

 

He added that lower oil prices would benefit Thailand due to reduced energy costs, but PTT's earnings from oil refinery and petrochemical sales in the first quarter will likely face losses due to high oil stock and lower sales of jet fuel.

 

“Therefore, we need to manage costs in oil refining by reducing storage to align with demand and supply amid a glut in the world market,” he added.

 

“Meanwhile, PTT must reduce unnecessary costs and focus on businesses that are not affected by the fluctuation in oil prices, such as trading and electricity”.

 

Source: https://www.nationthailand.com/news/30383692

 

-- © Copyright The Nation Thailand 2020-03-09

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As usual the rich dictating what will be. 

Cheaper fuel at the pumps - I bet not!!

slave to the oil ... you see they can lower the prices, if they want, i bet it can be much more cheaper

 

but I don't care as I don't have a car ????

29 minutes ago, Burma Bill said:

Cheaper fuel at the pumps - I bet not!!

60satang down for e20 from yesterday about 2.8%,but oil price over 30% down

https://web1.pttplc.com/en/Media-Center/Oil-Price/Pages/Bangkok-Oil-Price.aspx

Edited March 10, 20206 yr by mrmicbkktxl

9 hours ago, mrmicbkktxl said:

60satang down for e20 from yesterday about 2.8%,but oil price over 30% down

 

Yes for diesel too , but now the difference between premium and ordinary SHELL diesel is more than 5 B/l . Shame on you shell. profit , profit , profit !

PTT's premium stays cheaper , but isn't better.