Oil Price Hike and Baht Depreciation Worry Thai Government

[snoop1130]

 

BANGKOK (NNT) - The Federation of Thai Industries (FTI) expressed concern about the increasing oil prices and the depreciation of the Thai currency, while asking the government to carefully manage these worrying issues as they will put tremendous pressure on Thailand’s slow economic growth dampened by the COVID-19 pandemic.

 

Chairman of the FTI Supant Mongkolsuthree explained that higher oil prices will increase production cost and prices of goods, while a sluggish economy will partly affect the baht’s value.

 

The Energy Policy Administration Committee resolved earlier this month to cap the diesel price at 30 baht per liter starting today until the end of this month as part of the effort to ease the impact of increasing oil prices in the global market.

 

-- © Copyright NNT 2021-10-11

 

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[Rampant Rabbit]

funny saw  diesel b7 at 30.5today

[Crossy]

"Oil Price Hike and Bath Depreciation Worry Thai Government"

 

We only have showers, will this affect us?

 

[ThailandRyan]

Today the Thai baht is sitting at $1 USD to 33.86 THB.  I found the attached link to be interesting with its long range forecast which is in sharp contrast to early BOT predictions.

https://longforecast.com/usd-to-bht-today-forecast

[Thailand]

9 minutes ago, ThailandRyan said:

Today the Thai baht is sitting at $1 USD to 33.86 THB.  I found the attached link to be interesting with its long range forecast which is in sharp contrast to early BOT predictions.

https://longforecast.com/usd-to-bht-today-forecast

And for GBP https://poundf.co.uk/pound-to-baht-forecast-gbp-to-thb

[Gold Star]

Oil is now merely at inflation adjusted historical oil price averages. 

It will easily go much higher, given that global capital investments in oil exploration and production over the last few years has been at about 60% of the levels needed just to stand still. The energy transition hype is extremely overblown.

 

[smedly]

Good for tourism and exports - what is not to like ????????????

 

oh maybe not so good for laundering money out of Thailand 

[In Full Agreement]

3 hours ago, Gold Star said:

The energy transition hype is extremely overblown.

 

 

I don't know.   It sure looks like Electric Vehicles are roaring onto the market.    

[RichardColeman]

21 minutes ago, smedly said:

Good for tourism and exports - what is not to like ????????????

 

Tourism ? Could be 60+ baht to the my Uk £ nobody would still be coming in mass with the silly requirements !

[Albert Zweistein]

5 hours ago, Crossy said:

"Oil Price Hike and Bath Depreciation Worry Thai Government"

 

We only have showers, will this affect us?

 

Not unless you shower with diesel.

[fusion58]

6 hours ago, Thailand said:

And for GBP https://poundf.co.uk/pound-to-baht-forecast-gbp-to-thb

That would be most welcome news if true. ????

[Gold Star]

3 hours ago, In Full Agreement said:

 

I don't know.   It sure looks like Electric Vehicles are roaring onto the market.    

Perhaps where you live, but here in Thailand, I have not seen one yet. From a global perspective, it presents a once in a lifetime opportunity to invest in oil stocks now at ridiculously low prices. I'm up over 200% this year and growing.  

 

EV's as a percentage of total vehicles hardly factor into the big transportation picture at all, and won't start to make a dent for a long long while.

 

We are essentially undergoing a green energy addition, not an energy transition.

 

The world still requires and will continue to consume 100mbpd of oil for a long time, for fuels, and all other uses, but energy needs are growing rapidly. 

 

Any slight reductions in fossil fuel consumption that may happen in developed world economies, will be offset by increased use in others. The reality is that emerging economies like India, Africa, and SE Asia demand and will require much more energy, and don't have the money to supplement that addition by using expensive renewable energy options, or the infrastructure needed to run it.  

 

Global capital expenditures for E&P are down to about 60%, while we need 100% just to replace the reserves to produce our 100mbpd we now use. This will ensure some very high future prices shortly, and resulting energy crises. 

 

The more people that believe that we are going to solve climate change by going cold turkey and blocking the development of fossil fuels, the better for me.  It has advanced the date of the reality of scarcity of supply sooner, making oil companies with reserves extremely profitable.

 

With electricity blackouts, and the resulting high energy costs crippling national economies, this will be more disruptive than most think. 

 

I chose to put my money on it.

Up to you...

[ExpatOilWorker]

9 hours ago, ThailandRyan said:

Today the Thai baht is sitting at $1 USD to 33.86 THB.  I found the attached link to be interesting with its long range forecast which is in sharp contrast to early BOT predictions.

https://longforecast.com/usd-to-bht-today-forecast

Although I like it, let's leave a screenshot and come back in a few years and check it out.

 

[Blumpie]

Thailand has, and will continue to have no influence whatsoever on word fuel prices.  

[jacko45k]

11 hours ago, Rampant Rabbit said:

funny saw  diesel b7 at 30.5today

My Mrs was complaining how much it cost to fill the truck the other day maybe 35 baht/l but this was for the expensive V-Power stuff Shell offer. Had some issues with the cheapest stuff, as it appeared to have water in it!

[4MyEgo]

Hmmm, wonder what effect continued rising oil prices will have on future interest rates ?

[ThailandRyan]

1 hour ago, jacko45k said:

My Mrs was complaining how much it cost to fill the truck the other day maybe 35 baht/l but this was for the expensive V-Power stuff Shell offer. Had some issues with the cheapest stuff, as it appeared to have water in it!

38+ Thb yesterday at Shell to fill the car with the top 95 brand.  Watching the news this morning Oil prices are heading upwards and with economies struggling this is just another blow to those who have less money from reduced hours or being unemployed.  Sure someone will be along and say they should be using public transport, walk, or ride a bike if they can not afford the fuel, but then how do they get to their jobs which are sometimes to far to walk, and prices for public transport have risen as well.

[Kinnock]

For any Thai people who work in factories making goods for export, for any Thai people who (used to be) working in the tourist industry, and for Thai people who rarely travel abroad and who ride a scooter to work, this is good news. 

 

But for the remaing 1% of the Thai population this is bad news.

[ThailandRyan]

5 minutes ago, Kinnock said:

For any Thai people who work in factories making goods for export, for any Thai people who (used to be) working in the tourist industry, and for Thai people who rarely travel abroad and who ride a scooter to work, this is good news. 

 

But for the remaing 1% of the Thai population this is bad news.

How is it good news if fuel prices are rising?, do you mean they should be ok because they are working or because the Thai Government will subsidize the rise in price like they have before?

[jacko45k]

9 minutes ago, ThailandRyan said:

38+ Thb yesterday at Shell to fill the car with the top 95 brand.  Watching the news this morning Oil prices are heading upwards and with economies struggling this is just another blow to those who have less money from reduced hours or being unemployed.  Sure someone will be along and say they should be using public transport, walk, or ride a bike if they can not afford the fuel, but then how do they get to their jobs which are sometimes to far to walk, and prices for public transport have risen as well.

Actually checked with Mrs and she said it was over 37 baht/l in Chachoengsao,  (For the Shell V-Power diesel)...and I thought the price had been frozen until the end of the year..... the world may be trying to get out of the covid economic slump straight into an energy crisis. Obviously jet-fuel is going to go up, along with flight tickets and hence limit tourism. 

[Kinnock]

2 minutes ago, ThailandRyan said:

How is it good news if fuel prices are rising?, do you mean they should be ok because they are working or because the Thai Government will subsidize the rise in price like they have before?

..... because they don't own a car.  

 

[ThailandRyan]

1 minute ago, Kinnock said:

..... because they don't own a car.  

 

They still buy fuel do they not!

[jacko45k]

2 minutes ago, Kinnock said:

..... because they don't own a car.  

 

Increasing fuel prices is one of those that impacts all, transporting of people and food and goods  all become more expensive and hits prices. 

[Kinnock]

2 minutes ago, ThailandRyan said:

They still buy fuel do they not!

At over 100 mpg, not much

[Kinnock]

1 minute ago, jacko45k said:

Increasing fuel prices is one of those that impacts all, transporting of people and food and goods  all become more expensive and hits prices. 

Yes, if you buy imported goods, or products that are transported across the country.

 

We tend to look at the world through our own lens - but the majority of people in Asia live a very different life to us ..... especially if we include India, Cambodia, Laos, Indonesia as well as North Eastern and South Thailand.

 

Only the comparatively rich are significantly impacted by rising fuel prices and currency fluctuations - but many people living in Asia have no car, no AC and they eat local products. 

 

And those most impacted have major investments, consume imports and drive cars - and it's that viewpoint reflected in the OP.

[jacko45k]

Just now, Kinnock said:

Yes, if you buy imported goods, or products that are transported across the country.

They rarely transport large bunches of bananas on their backs from the farms to central Bangkok....

[Scott Tracy]

14 hours ago, ThailandRyan said:

.  I found the attached link to be interesting with its long range forecast which is in sharp contrast to early BOT predictions.

And the ad shown at the top of the page is for astrology. Another waste of time. Predictions to 2025...?

 

I wonder, if I were to act upon this information, would I win or lose?  I think I will test the predictions, as I have time to do it. I do like to try to debunk false news, false predictions, or any predictions for that matter...

TAT tourist predictions, GDP predictions, currency exchange predictions, share price index predictions, good price predictions...

I can't recall predictions for lorry driver shortages in Europe. For China banning beef sales from UK again.

[Scott Tracy]

It's all very well capping prices at the pumps for a couple of weeks. It's what happens after the cap ends that's worrying. Rice harvesting in November. Lorries, harvesters, pick ups all run on diesel, which will be more expensive after the cap ends. More costs in a harvest that rarely makes money for the sustenance farmer.

 

soon be back to hand harvesting.

[herfiehandbag]

15 hours ago, Crossy said:

"Oil Price Hike and Bath Depreciation Worry Thai Government"

 

We only have showers, will this affect us?

 

I come from Bath, it would be a shame if the old place were to depreciate!

[Kinnock]

1 hour ago, jacko45k said:

They rarely transport large bunches of bananas on their backs from the farms to central Bangkok....

True .... but in general the .middlemen do the transporting in the trucks, and they will be whining about the price of diesel. The small holding farmers are the ones who carry stuff on their backs, or on a 10 year old Rot Eatan that uses a litre of diesel per month.

 

But I get it ..... we are part of the 'haves' who are being impacted by currency falls and oil price rises, and it's difficult for us to see the world through the eyes of the 'have-nots"