Thailand Diversifies Oil Imports, Holds 117-Day Reserve
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- Thailand's Energy Ministry reported 117 days of oil reserves as of May 12, broken down as 25 days of legal reserves, 31 days commercial, 35 days in transit, and 26 days of confirmed procurement.
- Thailand is actively sourcing oil from Africa, the US, Australia, and Malaysia to offset Middle East supply risks tied to Strait of Hormuz tensions.
- Veerapat Kiatfuengfoo, Thailand's deputy energy permanent secretary, warned that if the war is prolonged, oil purchased outside the Middle East may become insufficient.
- Chevron CEO Mike Wirth warned earlier this month that the world may face physical oil shortages, comparing a Strait of Hormuz closure to 1970s-style supply disruptions.
- Brent crude futures rose $2, or 1.9%, to $106.21 per barrel on May 12, per Reuters, as global supply tightens.
- Trump rejected Iran's latest proposal to end the conflict and said the US-Iran ceasefire is "on life support," per media reports cited by the Energy Ministry.
Why it matters: Thailand's pivot to African, American, and Australian crude gives it a buffer against Strait of Hormuz disruptions, but officials warn non-Middle East supply could be insufficient if the war drags on. With Brent at $106.21/barrel and Chevron's CEO warning of 1970s-style shortages, Bangkok is racing to lock in alternative supply lines before competitors do.
