Falling world oil prices to benefit Thai economy in 2015

BANGKOK, December 16 (TNA) - The Thai Chamber of Commerce foresees that the Thai economy should benefit from falling world oil prices and other positive factors by the second quarter of next year. As world oil prices have dropped from 100 US dollars a barrel to about 60 US dollars a barrel currently, Issara Vongkusolkit, Chairman of the Thai Chamber of Commerce, pointed out on Tuesday that the lower world oil price should cut local logistics costs, by 3-4 per cent, and also the prices of some products, while raising people's purchasing power. Issara told journalists that the positive impacts should be noticeable by the second quarter of next year, when the government's farm product assistive measures should also create outcomes. According to the Thai Chamber of Commerce chair, if global oil prices continued to stand at the present level, Thailand could reduce imported energy costs by 146 billion baht annually. The Thai Chamber of Commerce chair conceded, however, that the lower world oil prices affect the Stock Exchange of Thailand (SET) because energy shares have huge values on the Thai bourse, predicting that international investors should shift from energy stocks to those in other sectors, including the agricultural sector, in the long term. (TNA)