Oil Fund contribution likely to be cut on Nov 12

Energy Minister Piyasvasti Amranand said that if oil prices keep moving up, the ministry would consider cutting the contributions of all fuels though it wants to concentrate more on promoting the use of B5 biodiesel and gasohol.

 "If oil prices keep escalating, on November 12, the ministry will promptly announce a further cut," he said.

 On Wednesday, Dubai crude oil price rose US$2.6 to $88.8 per barrel. Refined petrol in Singapore also increased $2.5 to $102 a barrel while diesel up $3.1 to $108.

 Piyasvasti attributed the current oil spikes to a number of factors, mainly the supply side. Though the hurricane past the Gulf of Mexico, the production has not yet returned to the normal pace. Meanwhile, a pipeline in Yemen was exploded and tension is rising in the Middle East. Weak dollar also drove hedge funds to step into the oil futures market.