Bt10 billion wiped off value of Thai oil, says industry source

[webfact]

Bt10 billion wiped off value of Thai oil, says industry source

By THE NATION

 

 

Thai refinery operators have seen the value of their stockpiled oil drop by Bt10 billion after the price of crude collapsed amid plummeting demand during the Covid-19 virus.

 

Oil sales in Thailand and other countries fell sharply in March and April, as economies worldwide ground to a halt under lockdown measures to curb the pandemic, an oil industry source said.

 

Airlines around the globe have suspended services amid the crisis, dramatically cutting the demand for jet fuel.

 

In Thailand, demand for aviation fuel has fallen by 90 per cent, leaving refineries unable to sell their stored product.

 

Diesel orders have also dropped, but demand is still there thanks to transportation needs. At the same time, petrol use in Thailand has hit new lows, after numerous businesses suspended operations because of the lockdown measures.

 

The source said Thai refineries needed to adapt to the situation by, for example, reducing production of jet fuel and switching to the manufacture of other kinds of oil and fuel.

 

Refineries around the world were gradually winding down their production capacity, in line with the falling demand, said the source, pointing to output falls of 10 to 30 per cent at Singapore, South Korea and India refineries, as well as those in Thailand.

 

Six refineries in Thailand have seen a total Bt10 billion wiped off the value of their oil in the first quarter of the year, the source said.

 

The second quarter would bring more favourable conditions as the Covid-19 crisis eased, with further improvement expected in the second half of 2020.

 

However, the source warned that the oil market may take time to recover as the virus crisis would linger. The pandemic would likely last to the end of 2020 or beginning of 2021, before normal life could be restored.

 

Source: https://www.nationthailand.com/news/30386573

 

-- © Copyright The Nation Thailand 2020-04-23

 

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[unamazedloso]

Good so lets go electric NOW then and dont waste money in ethanol production. It's a waste....

Better for the enviroment from no more stupid sugar cane burning, car exhaust, etc... Makes sense but the thai gov wants to boost ethanol production and bring it in as the main fuel when there is really no need.

[cornishcarlos]

3 minutes ago, unamazedloso said:

Good so lets go electric NOW

 

How do they produce the electricity ??

[bert bloggs]

And the baht still stays strong .

[robblok]

10 minutes ago, bert bloggs said:

And the baht still stays strong .

Ah yes an other that has no clue about how things work.

Did it ever occur to you that other countries like the US oil is hit hard too. Currencies will go down if a country preforms worse then others (and has a shortage on the trade balance because of that).

 

But just like corvid all countries are hit same goes for oil its not just Thailand that is being hit. So unless Thailand is hit far harder then other countries nothing will change. 

 

Just hoping will not bring the baht down. You seem to assume that all those traders in currency and validation agencies are stupid and don't do their work well.

[samran]

24 minutes ago, bert bloggs said:

And the baht still stays strong .

Tends to happen when you run a trade surplus. More people want your currency than don't.

[NCC1701A]

oil was trading at MINUS $40.32 a barrel. 

 

 

[Grumpy one]

17 minutes ago, NCC1701A said:

oil was trading at MINUS $40.32 a barrel. 

 

 

Does this mean I will get paid to fill my car 

[Jai Dee]

Several off-topic argumentative posts (and replies) have been removed.

[Susco]

23 minutes ago, robblok said:

But I have faith in rating bureau's like moodys and so on knowing it a lot better then you and me. 

 

Like the AAA ratings they gave the subprime securities?

[metisdead]

Some more off topic posts have been removed. 

[SkyFax]

2 hours ago, Grumpy one said:

2 hours ago, NCC1701A said:

oil was trading at MINUS $40.32 a barrel. 

 

 

Does this mean I will get paid to fill my car 

What it means is that someone holding an upcoming spot market crude oil delivery position -- rather than selling that position for more or less (profit or loss) than originally paid -- is having to PAY someone $40.32 a barrel to take the delivery position off their hands.

 

This is because the primary oil facility for the independent oil spot market at Cushing, OK is near full.

[Grumpy John]

3 hours ago, cornishcarlos said:

 

How do they produce the electricity ??

Coal fired power stations with LNG as well.   And those Thai coal powered Are not modelled on those fantastic Japanese HELE power stations! 

[CGW]

14 minutes ago, SkyFax said:

What it means is that someone holding an upcoming spot market crude oil delivery position -- rather than selling that position for more or less (profit or loss) than originally paid -- is having to PAY someone $40.32 to take the delivery position off their hands.

Which was a once in a lifetime event that has now destroyed the "Petrodollar" that's how I am reading it?

[CGW]

9 minutes ago, Grumpy John said:

Coal fired power stations with LNG as well.   And those Thai coal powered Are not modelled on those fantastic Japanese HELE power stations! 

~40% coal, the remainder use LNG which is produced in the Gulf of Thailand, or if more is needed the good Generals in Burma will help out - for a price!

[dddave]

Does Thailand pump any oil domestically? I know they have some NG wells.