Oil price expected to move around 85-90 USD in 2011

BANGKOK, 24 January 2011 (NNT) – Oil price in the global market for 2011 is projected to move in the range of 85 to 90 USD per barrel, with the average price hovering at 83 USD per barrel, according to the Thai Oil Group Plc.

According to Thai Oil Plc Chief Executive Officer (CEO) Surong Bulakul, oil price will likely drop after the Chinese New Year, thanks to the decreasing demand for heating oil in EU and the US, where the freezing season is nearly over.

Mr Surong added that the economic conditions in the US and Europe remained a major factor influencing the movement of oil price this year.

Regarding the company’s investment plan for the next five years, from 2011 to 2015, the CEO said the giant conglomerate would spend around 1 billion USD on its refinery with the hope of increasing its refining capacity from 275,000 barrels to 300,000 barrels a day.