Thailand's PTT Warns of Potential Crude Glut Once Hormuz Strait Reopens — OPIS

PTT Public Co. has warned of a potential oversupply of crude oil once the situation in the Middle East stabilizes and the Strait of Hormuz reopens, it said in a filing with the Stock Exchange of Thailand on Tuesday.

Despite the risk of oversupply, PTT has continued its procurement activities, purchasing around 70 cargoes of crude oil and delivered to its refineries between March and May.

Around 30% of these crude barrels were sourced from the Middle East, while the remaining 70% were from alternative sources, including the U.S., West Africa, Latin America and Malaysia.

Due to the Iran war and the traffic standstill in the Strait of Hormuz, PTT has extended its crude procurement lead time from the normal 45-60 days to 90 days.

Vessel crossings have come to a near-standstill, with daily crossings through the strait averaging around five vessels from April 1 to April 28, according to Kpler data.

PTT reported no disruption to production across its three refineries, the 275,000 b/d Thai Oil Refinery in Sriracha, the 215,000 b/d IRPC Refinery in Rayong and the 280,000 b/d PTT Global Chemical Refinery in Map Ta Phut. The refineries have been operating at an average utilization rate of 105%.

Domestic demand for diesel in Thailand increased to 80-90 million liters per day during the height of the U.S.-Iran war, compared to the normal level of around 70 million liters per day. This has since receded to around 30-90 million liters per day after the Thai New Year in mid-April.

However, PTT refineries continue to operate at high utilization rates to ensure diesel supply remains adequate to meet domestic demand, the group added.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Thomas Cho, tcho@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com

(END) Dow Jones Newswires

April 29, 2026 03:15 ET (07:15 GMT)