Citi: Rising oil prices may drag down Thailand's demand, but the impact will be cushioned

According to Golden Ten Data on March 9, Citi Research analyst Wei Zheng Kit wrote in a report that higher oil prices may drag down Thailand's external and domestic demand. As Thailand imports nearly 1 million barrels of crude oil per day, the country is relatively vulnerable to oil price shocks triggered by Middle East conflicts. The Thai government is currently providing subsidies through the Oil Fuel Fund to maintain stable retail prices, while also increasing domestic energy production, suspending refined oil exports, and diversifying import sources to support domestic demand. However, since Thailand's GDP is less dependent on oil and the likelihood of monetary policy tightening is low, the impact of rising oil prices may be mitigated.