Crude prices eclipse $100 per barrel

Crude prices eclipse $100 per barrel

ARANEE JAIIMSIN & YUTHANA PRAIWAN

US crude prices hit a record US$100 a barrel yesterday on supply concerns in the Middle East and a record-low dollar.

The West Texas Intermediate futures contract rose two cents from the previous close to $99.64 a barrel as of yesterday evening Thailand time. The contract traded briefly at $100 a barrel on Wednesday, stoked by violence in Opec exporters Nigeria and Algeria. London Brent crude shed three cents to $97.81.

The US dollar also hit a five-year low, which also affected oil prices.

Prasert Bunsumpun, the president of PTT Plc, said oil would top $100 a barrel for only short periods, but supply concerns could mean the price would hover around $100 throughout the year.

Dubai crude, the benchmark used locally, is expected to average $80 a barrel, up $10 from average 2007 prices. Pump prices would average 30-33 baht a litre for all fuel types, PTT predicts.

Mr Prasert said pump prices would not exceed 35 baht a litre as some analysts believe, given the weak US dollar.

Thai Oil Plc deputy managing director Somkeirt Hudthagosol said domestic oil consumption would not decline as much this year as last year, while renewable energy would be more popular.

Extra refined oil supplies of 50,000 barrels per day this year from Thaioil would help ease supply tensions. Gross refining margins would remain at $5-6 a barrel, the same as last year, he added.

Despite oil costs, the logistics business has not seen a strong impact on its profits, said Poonsak Thiapairat, managing director of Eternity Grand Logistics Plc.

Energy Minister Piyasvasti Amranand said the private sector would need to weather the oil price crisis by using alternative fuels instead of asking for help from the government.