Thai domestic oil prices set to drop unless Mid-East tension rises

BANGKOK, July 11 (TNA) – Domestic oil prices in Thailand are likely todrop further next week unless renewed tensions in the Middle East caused by Iran's missile test escalates, according to an industry executive.

PTT Oil Business Group senior executive vice president Chaiwat Churith said that PTT is closely monitoring global oil price movements after the crude price in the United States rose by over US$5 per barrel Thursdaynight upon new reports that Iran had test launched a missile.

He said many countries around the world had kept a close watch on the situation and hoped it would not worsen because the test site is locatedin an area where there is a major crude oil supply.

Should the tension there escalate, it would definitely affect oil prices.

But unless the situation deteriorates as many worried, he said, the local retail oil prices are likely to further drop next Monday after they hadfallen by one baht per litre in the past few days.

Regarding liquefied petroleum gas (LPG) procurement for Thailand's domestic supply, Mr. Churith predicted that the demand for LPG would surge again from August until the end of this year, unless government policyslows LPG consumption in the vehicle sector.

Now, he said, the number of vehicles seeking the LPG alterationsinstallation kit had increased by 100,000 units monthly.

So, he estimated that LPG imports must increase from 20,000 tonnes to 40,000-60,000 tonnes per month to accommodate the surging demand in the country. (TNA)-E005