Thailand Diversifies Crude Imports Amid Middle East Conflict

Thailand has made significant progress in reducing its reliance on Middle Eastern crude oil, according to Energy Minister Akanat Promphan. In a recent interview with Bloomberg Television, he stated that the country's reliance on Middle Eastern suppliers is now below 30 percent, down from around 60 percent before the war in the region began.

This marks a significant shift in Thailand's energy landscape, as the country has been actively diversifying its crude oil imports to reduce its dependence on the Middle East. According to Krungsri Research, Middle Eastern suppliers provided around 58 percent of Thailand's crude imports at the conflict's onset, with 0.3 million barrels per day transiting through the Strait of Hormuz.

However, as reported by the Bangkok Post, the six domestic refineries in Thailand have reduced their reliance on Middle Eastern oil from 85 percent to 30 percent during the conflict. This has been achieved through rerouting supply chains, with some companies sourcing crude from Fujairah in the United Arab Emirates and others importing Murban crude from the UAE.

Despite this progress, energy experts caution that price exposure remains a significant concern for Thailand's energy security. Krungsri Research noted that Dubai crude prices have increased by 61 percent since the conflict began, which could impact Thailand's economy and inflation rates.