Diesel prices dip amid international economic recession fears and rate of interest hikes

On Monday, Diesel prices have fallen to around 32 baht per litre, as world crude oil costs proceed to say no amidst considerations about an economic recession.
The Oil Fuel Fund Office (Offo) has attributed this lower to economic contraction, ensuing from central banks’ rate of interest hikes. As Stunning , including the Federal Reserve and the European Central Bank (ECB), continue to increase interest rates, a slight drop in fuel consumption is expected.
The World Bank has warned that central banks’ decisions to lift rates of interest in response to high inflation could result in a world recession in 2023. Recent rate of interest hikes by the Fed and the ECB have increased borrowing prices for consumers and made business loans dearer. In Thailand, native economists consider the Bank of Thailand will increase its policy price to 2% this month, reports Bangkok Post.
“If there are no unexpected incidents brought on by major oil-producing nations or geopolitical conflicts, the prices are expected to maintain falling,” based on the Offo. Dubai crude oil reference costs have decreased from US$91.13 per barrel in October final year to $78.5 per barrel on average in March.
Global crude oil prices are anticipated to keep reducing to US$85-95 a barrel on common this year as the world financial system slows down. However, global oil prices will still fluctuate and could go up at any time if provide is disrupted, mentioned Nitipat Saengdaochai of PTT Prism through the eleventh annual petroleum outlook forum.
The International Monetary Fund (IMF) has projected a fall in global GDP from 3.4% in 2022 to 2.8% this yr, earlier than settling at 3% in 2024. In Thailand, GDP is expected to develop by 3-3.5% this year, whereas inflation will hover in a spread of 2.7-3.2%, in accordance with the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB).
Despite the sluggish economic prospects, the crude oil value has been pushed by rising provide tightness concerns after Opec and its allies decided to chop oil manufacturing, said Chaiwat Kovavisarach, group chief govt and president of Bangchak Plc..