Citigroup: Rising prices may put pressure on demand in Thailand.

Citi Investment Research Analyst Wei Zheng Kit wrote in a report that rising oil prices may put pressure on both external and domestic demand in Thailand. The country is vulnerable to the impact of oil shocks from the Middle East conflict as it imports nearly 1 million barrels of crude oil per day. Currently, the Thai government is trying to support domestic demand by subsidizing the Petroleum Fund to maintain retail price stability, while also increasing domestic energy production, suspending the export of refined oil products, and diversifying import sources. However, the impact of rising oil prices may be mitigated by Thailand's low oil intensity GDP and the low likelihood of tightening monetary policy.