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Published on March 22, 2008

PTT senior executive vice president Chaivat Churitti said that as of yesterday, Dubai crude oil stayed at US$94 (Bt2,900) per barrel on worries about the US economy that encouraged sell-offs in the oil-futures market. While the US oil reserves remained at a high level and a Cilacap refinery in Indonesia resumed operations after a temporary shutdown, refined petrol dropped to $104.26 a barrel.

After the change, 95-octane petrol will be Bt34.09 per litre, gasohol 95 Bt30.09, 91-octane petrol Bt32.99 and gasohol 91 Bt32.99.

While PTT's diesel price remains unchanged at Bt30.94, other retailers today will cut their diesel price 50 satang to match PTT's price.

"We cannot lower our diesel price, because PTT still shoulders losses," said Chaivat, adding that oil prices remained highly volatile and thus consumers needed to be vigilant about oil consumption.

PTT has so far shouldered Bt1 billion in losses from its retail oil business, due to delays in price increases to catch up with actual costs.

On Thursday, world oil prices briefly fell below $100 a barrel, slipping further from record highs struck earlier this week amid fears of a global slowdown in energy demand, traders said.

Concerns about US growth were renewed after the Organisation for Economic Cooperation and Development (OECD) reduced its US growth forecasts for the first half of the year and said the US economy was teetering on the brink of recession.

The Paris-based OEDC said the US economy was now expected to grow 0.1 per cent in the first quarter, down from the 0.3 per cent estimated last December, and would display zero growth in the second quarter, down from the 0.4 per cent forecast previously.

New York's main oil-futures contract, light sweet crude for delivery in May, closed down 70 cents at $101.84 per barrel after earlier sinking as low as $98.65, reported Agence France-Presse.

"Crude fell below $100 a barrel as fears of a US recession, its impact on the rest of the world and on oil-demand growth continue to dominate headlines," Sucden analyst Michael Davies said before prices recovered somewhat.

In the past week, New York crude hit a record $111.80 on the back of the plunging US dollar, which hit a record low against the euro. The weak US currency encourages demand for dollar-priced commodities as they become cheaper for buyers paying in stronger currencies.

The Nation