PTT Exploration and Production Plc (PTTEP) CEO Montri Rawanchaikul expressed worries about intensified price fluctuations if the conflict expands to other areas. The parent company, PTT Plc, shared a similar view. PTT CEO Auttapol Rerkpiboon stated that global crude prices have increased due to the “psychological impact” of the war.
Thai Oil Plc estimated that West Texas Intermediate reference crude oil prices would average $80-87 per barrel last week, but the conflict’s potential impacts may result in higher prices. The war in Ukraine in 2020, for example, led to global oil prices surpassing $100 per barrel, causing an increase in liquefied natural gas (LNG) prices and higher electricity bills in Thailand.
Chairman of the Federation of Thai Industries, Kriengkrai Thiennukul, emphasized the need for careful management of energy expenses in manufacturing industries due to potential cost increases associated with higher oil prices.
Nutta Mahattana, assistant managing director for investment strategies at Krungthai Asset Management, anticipates that the conflict could push oil prices up to $150 per barrel. However, the brokerage firm Asia Plus Securities (ASPS) believes that the war’s impact on oil prices may remain limited since Israel and Palestine are not major oil producers. ASPS expects oil prices to stay flat at $85-87 per barrel, unless the conflict extends to other regions with significant oil production.
It is important to monitor the Israeli-Hamas conflict closely as it could have wider implications if it escalates. Western countries, such as the United States, Europe, and Canada, support Israel, while Hamas has alliances with Arab countries like Syria, Lebanon, and Iran. ASPS states that the war is not expected to become more violent like the Russia-Ukraine war. However, if the conflict escalates, crude oil prices may fluctuate due to the involvement of major oil producing regions such as the Middle East, the US, and Canada.
Overall, it is essential to keep an eye on the situation and consider its potential impact on global crude oil prices.
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SOURCE: bangkokpost.com
