Oil prices should not go beyond 110 US dollars per barrel

BANGKOK, 23 March 2011 (NNT) – Oil prices should not go beyond 110 US dollars per barrel although the situation in Libya is getting more violent with continuous attacks by the western alliance.

Energy expert Manoon Siriwan voiced his belief that the oil price would not go much further from the current one following clashes between the allied forces and Libyan troops loyal to their leader Colonel Muammar Abu Minyar al-Gaddafi.

Mr Manoon viewed that the battle between the two sides would not get worse and should end very soon; however, oil price would remain high at not more than 110 US dollars per barrel until the beginning of next month.

The energy expert speculated that Libya might have to suspend its oil exports further until the domestic violence eased off.

As for impact to Thailand, Mr Manoon admitted that retail oil prices in Thailand tend to move up following the violence in Libya. He also indicated that the reaction of the government to its diesel price subsidy policy must also be monitored.