Thai experts: Oil price to be volatile amid increase in supply next year

[webfact]

Experts: Oil price to be volatile amid increase in supply next year

BANGKOK, 05 November 2014 (NNT) – Prices of oil will be volatile next year although supply will increase, according to those at a major seminar held on Tuesday by oil conglomerate PTT Plc. and the Federation of Thai Industries (FTI).

Sukrit Surabotsophon ( สุกฤตย์ สุรบถโสภณ), chairman of the Petroleum Refining Industry Club at the FTI, gave the view that the crude oil price would be higher next year than at present. This would be the case due to better expansion of the global economy, although production of crude oil will also increase due to higher output from the United States, Libya, Iraq and Iran. He expects the crude price to move between 90-95 US dollars per barrel next year.

Meanwhile, Energy Ministry Permanent Secretary Khuruchit Nakhonthap (คุรุจิต นาครทรรพ), was confident that oil price would continue to decline. He said the state should take this opportunity to restructure the entire pricing system in the energy sector. For example, the contribution rates to the Oil Fund should be adjusted and the management of the fund reviewed. He gave another example, saying the excise rates on the various types of oil should also be reviewed.

Sutthapa Amornwiwat, First Executive Vice President of Siam Commercial Bank, agreed that revamping the pricing structure of energy to be more in line with market mechanism would be beneficial. However, she noted that studies have indicated any raising of energy price has a more pronounced effect on cost of production compared to rises in other costs.


-- NNT 2014-11-05

[NeverSure]

The Thais are now not only experts on the world oil situation, but they are also clairvoyant. Maybe they will give me tips on the stock market.

I'll bet they are unaware that Saudi Arabia and the US are pumping an excess of oil to drive world oil prices down and hurt Russia's economy.

Noooooo. they don't think that deeply, nor do they look beyond the borders of Thailand.

[worgeordie]

So if there is going to be an over supply,prices will come down,no don't think so.

When the price of oil rises ,price increases are past on almost immediately,

Regards Worgeordie

[monkeycountry]

The Thais are now not only experts on the world oil situation, but they are also clairvoyant. Maybe they will give me tips on the stock market.

I'll bet they are unaware that Saudi Arabia and the US are pumping an excess of oil to drive world oil prices down and hurt Russia's economy.

Noooooo. they don't think that deeply, nor do they look beyond the borders of Thailand.

They don't have to. Thailand has more oil reserves than Sauidi Arabia, and more gas reserves than Russia - according to the anti-oil brigade

[pattayasnowman]

Well these Thai "Experts" are expert in stateing the bloody obvious

When has Oil prices not been volitile?

Have they bothered to look at a price chart recently ?

Crude Oil has dropped fro $104/barrel to $76/barrel in some 4 months !

Now thats volitile - the question is will we see this $30/barrel price drop reflected at the Gas pumps?

[sendbaht]

What are you all talking about anyway? It's not oil anyway....it's OAI

[NeverSure]

So if there is going to be an over supply,prices will come down,no don't think so.

When the price of oil rises ,price increases are past on almost immediately,

Regards Worgeordie

Crude is just one factor in the prices we pay. Most of what's taken from a barrel of oil isn't gasoline. In fact, gasoline is a minor byproduct that was fairly worthless before the widespread use of the gasoline engine.

There is the transportation from the oil field to the refinery, the refining, the transportation to the gas station which may have a stop at a tank farm on the way, and there is the markup at the gas station. There is any tax the government puts on it. All of those prices are pretty stable. Only the price of the crude fluctuates.

Gas is pretty cheap right now. I'm paying about US$3.40 for a US Gallon. (111 baht. or +/- 125 baht per UK gallon.)

Edited November 5, 2014 by NeverSure

[uffe123]

There are some people in Thailand getting very rich off oil. The average price in the U.S. is 3 bucks a gallon. That equates to about 22 baht per liter for gas.

Why are people in Thailand still paying an average of 34 bath per liter?