Thailand’s largest oil refinery said on Tuesday that domestic petrol demand is returning to pre-pandemic levels after the country reopened its borders to kick start the economy.
Thai Oil Plc [TOP] told investors and the media that demand for both gasoline and diesel has returned and that it will reach pre-pandemic levels by next year.
The one caveat to returning demand is jet fuel which will not reach pre-pandemic level until at least the end of 2022 due to restrictions in air travel.
Supply and demand
Torsang Chaipravat, a senior vice president at the company, said that there should be no fuel shortage despite increased demands.
There is due to be an increase in production in the US and Canada but other oil-producing countries have stopped short of a production increase.
Both Russia and OPEC countries have pushed back on the US and Canada’s effort to boost production saying there is enough supply to weather the new demand.
“Inventories have stopped drawing, which shows there is no deficit at the moment,” Russia’s Deputy Energy Minister Pavel Sorokin told Bloomberg TV
“Everybody is predicting a surplus of supply starting from the first or second quarter, it’s just a matter of timing by a few months.”
Sorokin added that if there is a need, Russia had the capacity to resume pre-pandemic production levels.
The price of Thai Oil rose by only half a percent on Tuesday morning with investors waiting to see worldwide stockpile levels and whether the local demand holds.
Analysts say that a fourth wave of the pandemic could severely affect local recovery if the country were to shut down again.