Higher Oil Prices May Impact Thailand's Demand, Says Citi Analyst

Citi Research analyst Wei Zheng Kit has indicated that rising oil prices could negatively affect both external and domestic demand in Thailand. According to Jin10, Thailand imports nearly one million barrels of crude oil daily, making it vulnerable to oil price shocks triggered by Middle Eastern conflicts. To stabilize retail prices, the Thai government is currently subsidizing through the Oil Fuel Fund, increasing domestic energy production, halting refined oil exports, and diversifying import sources to support domestic demand. However, the impact of rising oil prices may be mitigated due to Thailand's low GDP dependency on oil and the unlikely tightening of monetary policy.