Dr. Kobsak warns that if world oil prices reach $110 per barrel, it will enter a dangerous level.

Dr. Kobsak warns that global oil prices reaching $110 are entering a dangerous level. He cautions that further price increases could repeat the crisis during the Russo-Ukraine war and advises Thailand to urgently prepare a contingency plan.

Date 9 March 2569 at 06.19:XNUMX p.m. Dr. Kobsak Pootrakul, Managing Director of Bangkok Bank and Chairman of the Federation of Thai Capital Market Organizations (FETCO). A post on Facebook stated that at $110 per barrel, world oil prices had entered a dangerous level.

Code RED stems from concerns over yesterday's attack on Iranian oil facilities, the potential for further attacks and Iranian retaliation to escalate and disrupt oil production infrastructure in the Middle East.

Ports, oil tankers, oil refineries, gas plants, oil storage facilities, and possibly even desalination plants are all sitting targets.

It's reached a point where I have to say... World oil prices have entered Code RED levels. This will have a serious impact on the global economy if it doesn't decline quickly. If it rises further, it will lead to the period everyone saw during the early stages of the Ukraine-Russia war, when it reached 120-130 dollars per barrel and remained above 100 for four months between March and July 2022, causing various problems for the global economic system.

As everyone recalls, inflation soared across the globe, the cost of living increased dramatically, central banks accelerated interest rate hikes, asset prices plummeted, and the digital asset rally, which had previously performed exceptionally well, came to an end. Bitcoin plummeted from $70,000 to $17,000, causing widespread damage.

For Thailand at that time (during the start of the Ukrainian-Russian war), we were also greatly affected. Domestic oil prices have been subsidized to the point of incurring a burden of hundreds of billions of baht. This time, the price is at $110 per barrel, and although it has slightly declined this morning, there is a risk of prices rising further in the coming period.

Further damage to oil infrastructure in the Middle East means we must prepare for the consequences. Last week, we thought there was still time to cope, but now the challenge has become significantly more difficult. Price support may not be sustainable for long.

Oil and energy supplies could face long-term shortages if the war escalates and parts of the oil production and transportation infrastructure are destroyed. We'll need a Plan B.

We need to accelerate the search for and confirmation of oil reserves before other countries, consider other renewable energy sources, seriously promote solar and electric vehicles (EVs), bring back traditional options like coal, and open up new avenues that were previously closed off, such as energy from Russia. It's time to say "Move, Move, Move!" Preparation is better than no preparation.

Reference : Facebook : Kobsak Phutrakul

Read related news

• Staying updated: The US and Israel launch attacks on Iran, escalating tensions throughout the Middle East.
• Global oil prices surpass $100; Trump says it's a small price to pay in exchange for destroying Iran's nuclear threat.