Thailand holds 60-day oil buffer as Israel-Iran tensions threaten global supply

Thailand is closely monitoring the ongoing conflict between Israel and Iran, as global oil prices rise markedly. Domestic reserves would last for 60 days, should tensions escalate further, according to Veerapat Kiatfuengfoo, Deputy Permanent Secretary and Spokesperson for the Ministry of Energy.

Thailand currently holds 3.337 billion litres of crude oil in storage, sufficient for 25 days’ consumption, along with 2.457 billion litres in transit, sufficient for another 19 days, and 1.874 billion litres of refined oil, enough for 16 days.

While Iran has signalled, to the US, its willingness to de-escalate tensions, surrounding its nuclear programme, the situation remains unpredictable, prompting global concern.

A key issue is the potential disruption of vital oil transport routes to Asia, particularly the Strait of Hormuz. If these important routes are blocked, global crude oil prices are likely to rise further.

In response, Thailand’s Oil Fuel Fund has resolved to reduce the levy on petrol and diesel, in an effort to stabilise domestic fuel prices and safeguard the fund’s long-term sustainability.

Israel has launched unprecedented strikes on Iran since Friday, stating that its aim is to prevent Tehran from acquiring nuclear weapons, a goal which Iran denies pursuing.

By Franc Han Shih, Thai PBS World

The Israeli attacks have killed at least 224 people and wounded more than 1,277, according to an official toll released Monday.

In retaliation, Iran has carried out multiple attacks, which have killed at least 24 people in Israel since the strikes began.