BANGKOK, 05 November 2014 – 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 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 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.
