FAQ

What are the possible channels for receiving Thaioil’s products?

There are two channels for receiving our products:

1. Road transport ( Sriracha Terminal, Lam Luk Ka Terminal, Saraburi Terminal and Khon Kaen Terminal)
2. Marine transport.

Who are Thaioil’s customers?

Our customers are wholesalers, retailers, and end users.

What should customers do if they want to visit Sriracha Terminal

Customers can contact Commercial Excellence Team or Commercial team and submit an official letter stating the purpose and details of their visit. Alternatively, click here to submit the request.

How can customers purchase products from Thaioil Group?

Customers can register as new clients by providing their information through the following links:
Petroleum Products (TOP, TLB, TPX, LABIX)
Solvent and Chemical Products (TX)

What documents are required to apply to be a client of Thaioil?

1. Three years of audited comparative financial statements
2. Annual report (if available)
3. Certificate of Company Registration issued by the Department of Business Development, Ministry of Commerce
4. Memorandum of Association (BOR OR JOR II for Thai Company))
5. Company profile
6. Copies of the list of shareholders’ names (BOR OR JOR V for Thai Company)
7. Tax identification card
8. Value-Added Tax Registration (Por Por 20 for Thai Company)
9. License for Petroleum Trader (Section 7 (Nor Por 104) / Section 10 (Nor Por 105)) (if applicable)
10. For domestic customers interested in exporting petroleum from Thailand: a letter of approval for the nature and quality of fuel, which is not subject to the conditions set by the Department of Energy Business (Tor Por Kor 412).

Customers can fill out their information on the new customer registration page, click here.

When discussing the oil market, why do we refer to the WTI Crude Price (NYMEX)?

The West Texas Intermediate (WTI) crude is traded on the US NYMEX, considered the Futures Market. It is the world’s most liquid market and the largest futures market. The WTI crude price serves as a benchmark for many types of crude traded in North America.

Typically, the prices of Brent crude (traded in Europe and Africa) and Dubai crude (often referenced in the Middle East and Asia) align with WTI prices. Generally, Brent is USD 3-4 per barrel higher than WTI, while Dubai’s prices tend to be USD 2-3 higher than WTI. However, those price benchmark level can sometimes be fluctuated, depending on demand and supply in each region.

Why do we need to monitor the US economy and how it affects oil prices?

Crude oil prices are primarily determined by supply and demand fundamentals. When demand rises, prices increase. Conversely, an increase in supply typically causes prices to drop. Economic indicators serve as forecasts for future demand; for instance, positive economic data suggests expansion, leading to increased oil demand. Typically, when the US reports improved economic figures, oil prices tend to rise the same day. Key indicators influencing crude prices include Gross Domestic Product (GDP), unemployment rates, retail sales, industrial production indices, consumer confidence indices, and real estate indices, such as new housing development rates. Moreover, US is one of the top 3 of oil consumers together with China and Europe.

What factors influence global oil prices?

Factors affecting oil prices can be categorized as follows:

1. Demand/Supply Fundamentals

1.1 Demand

Demand refers to the consumption of crude oil (by refineries) and oil products (by consumers). Forecasted demand usually pertains to oil products; prices rise with increased demand. Economic growth is a key indicator of rising oil consumption. Conversely, during economic downturns, oil demand typically decreases.

1.2 Supply

Supply encompasses both crude oil and refined product quantities. Discussions about oil supply usually focus on crude. Generally, prices increase when supply decreases. Forecasting oil supply depends on the production outputs of two major groups: OPEC and Non-OPEC. OPEC typically supplies about 30-40% of global production capacity and seeks to balance market demand and supply. For instance, if Non-OPEC production increases, OPEC may cut back its output to prevent oversupply and falling prices.

OPEC meetings, held in Vienna, Austria, receive significant attention as members make decisions regarding production quotas. OPEC uses these meetings to adjust crude pricing appropriately. For example, in the latter half of 2008, in response to falling prices, OPEC reduced its output by 4.2 million barrels per day to stabilize the market.

1.3 Oil Inventories

Oil inventories include both crude oil and petroleum product inventories. US inventories, reported by the U.S. Energy Information Administration (EIA) every Wednesday, directly impact WTI crude prices. Additionally, European, Japanese, and Singaporean inventories also affect crude and petroleum product prices in their respective regions.

2. Financial/Investment Flows

Financial and investment flows influence global oil markets, as oil trading has increasingly become investment-oriented. Investors seek maximum returns, leading to shifts in markets.

2.1 Financial Markets

Crude prices generally move inversely to the US dollar; prices rise when the dollar weakens. Factors influencing this relationship include:

(1) Capital Flow: Investors tend to move from low-risk (USD) to high-risk (equity and oil) assets during good economic times, causing stock and oil prices to rise as the dollar weakens.
(2) Inflation Risk Management: As energy costs drive inflation, investors often shift to oil to hedge against losses. This contrasts with other investments, which may yield losses during inflation.
(3) Producers’ Perspective: If the dollar weakens, oil producers earn less per transaction. Consequently, they may raise prices to maintain returns.
(4) Consumers’ Perspective: A weaker dollar means consumers pay less for the same oil volume, often leading to increased demand and higher prices.

2.2 Investment Market

Crude prices often align with movements in equity markets, especially major US indices like the Dow Jones. Investors favor high-risk assets during economic optimism, driving both stock and oil prices higher. Energy stocks, comprising a significant portion of the equity market, typically rise alongside crude prices.

3. Market Sentiment

Market sentiment has become a crucial factor in oil pricing, especially over the past couple of years. Investors are influenced by news, forecasts, and geopolitical events affecting supply and demand dynamics. Sentiment can lead to speculative buying or selling, impacting prices significantly. For example, during the 2008 economic crisis, concerns over reduced oil demand led to falling prices. Conversely, signs of economic recovery in 2009 prompted rising oil prices despite stagnant consumption.

Which institution declares US oil inventories, and how does it affect crude prices?

The US Energy Information Administration (EIA), part of the US Department of Energy, announces oil inventories, consumption rates, and production data every Wednesday. The American Petroleum Institute (API) also provides inventory figures every Tuesday evening after NYMEX closes, meaning it does not affect WTI prices on those days. Reuters compiles analyst forecasts each week, and discrepancies between EIA’s reported inventories and expectations can significantly influence crude prices. Generally, a decrease in inventories raises prices due to supply concerns, while an increase leads to price drops as the market reacts to perceived oversupply.

Which organizations play a significant role in the global oil market?

The US Energy Information Administration (EIA), established by Congress in 1977, operates as an independent agency within the US Department of Energy. It collects data on energy demand, supply, prices, and technological developments, providing forecasts and analyses to inform energy policy. The EIA also publishes monthly short-term and long-term oil market outlook reports.

The International Energy Agency (IEA), founded in 1974 and headquartered in Paris, France, aims to prevent oil shortages among its member countries and provide market statistics. The IEA offers consultancy services focusing on energy security, economic development, and environmental conservation, particularly regarding global warming and renewable energy.

The Organization of Petroleum Exporting Countries (OPEC), established in 1960, originally included five founding members: Saudi Arabia, Iraq, Iran, Kuwait, and Venezuela. Then some countries were later joined and currently, the organization has a total of 12 members in 2024 (Saudi Arabia, Iraq, Iran, Kuwait, Venezuela, Libya, the United Arab Emirates, Algeria, Nigeria, Gabon, Equatorial Guinea and Congo) while some countries such as Indonesia, Gabon, Qatar, Ecuador and Angola suspended its membership. OPEC manages and focuses on stabilizing oil prices and ensuring equitable returns for producers.

How to become a supplier to Thaioil Group?

Initial Steps to Become a Thai Oil Group Supplier

1. Online Application: Complete the online application form on the Thai Oil website. The company will initially consider your profile.
2. Selection and Qualification Evaluation: If you meet the initial criteria, the Buyer will contact you to request additional information for evaluation.
3. Approval: Upon successful evaluation, the Supplier Relationship Management unit (SRM) will notify you of the approval to register as a supplier of Thaioil Group.

Notes:

– The required information and supporting documents for the application will vary depending on the type of goods or services offered.
– The review period will depend on the complexity of the information and supporting documents.
– Thai Oil reserves the right to change the application process and evaluation criteria without prior notice.

Additional Information:

It’s recommended that potential suppliers review the Sustainable Code of Conduct for Suppliers of Thaioil Group (SCOC) to prepare for the evaluation process (link provided).

Sustainable Code of Conduct for Suppliers of Thaioil Group

What documents are required for registration?

The required documents for registration vary depending on the type of supplier. Please find the details below:

Notes:

• All copies of documents must be clear, legible, and certified by an authorized person.
• The Business Registration Certificate must be no more than 6 months old.
• For copies of ID cards and passports, please conceal sensitive information such as religion, gender, and nationality.
• The additional documents may be required depending on the type of business and associated risks.

Does Thaioil Group have any sustainability requirements for suppliers?

Yes, Thaioil Group is committed to sustainable practices. We encourage you to review our Sustainability Code of Conduct for Suppliers ([link to document, if available]) to familiarize yourself with our expectations.