Shippers warn rising crude oil price will affect exports

Oil-related exports have so far benefited from rising crude prices, but this could change if the price rises to US$80 a barrel, the Thai National Shippers’ Council warned on Thursday.

Chairwoman Ghayapad Tantipipatpong said when the crude price rose to $75 a barrel it also raised the price of oil-related exports, and oil-producing countries had stronger purchasing power.

That was why the council had predicted the total value of exports would rise by 9% this year, she said.

“However, the oil price will be beneficial to exports only as long as the price does not exceed $80 per barrel. If it is higher, production and transport costs will rise at once,” Ms Ghayapad said. The shippers council was closely monitoring the price.

She also believed the trade tariffs dispute between China and the United States would have a positive impact on Thai exports of products that could replace Chinese products in the US market. She cited rice, natural rubber, seafood, vegetables and fruit.

Southeast Asian nations like Indonesia, Thailand and Vietnam could also welcome large-scale manufacturers who chose to move their bases to avoid the impact of the Sino-US dispute, Ms Ghayapad said.

Article source: https://www.bangkokpost.com/news/general/1552002/shippers-warn-rising-crude-oil-price-will-affect-exports

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