Thailand cuts crude imports, reliance on Mideast Gulf

Market: Crude oil
26/03/21

Thailand's crude imports in 2020 fell to their lowest level since at least 2015 because of a fall in domestic refinery run rates and reduced reliance on Mideast Gulf crudes.

Thailand's total crude imports fell to 837,000 b/d in 2020 from 856,000 b/d in 2019, according to data from the country's energy department. Many Thai refiners had operated at lower rates last year as the Covid-19 pandemic cut demand for refined oil products. Thai refiners processed about 1mn b/d of crude in 2020, below the country's refining capacity of about 1.24mn b/d.

Thailand also reduced its reliance on Mideast Gulf crudes as refiners diversified their supply sources. Opec+ production cuts also likely led to a fall in crude availability from the Mideast Gulf last year, prompting Thai refiners to look elsewhere. The Mideast Gulf contributed 54pc of Thailand's total crude imports in 2020 compared with 57pc in 2019 and 61pc in 2018, according to the energy department data. Mideast Gulf crude accounted for 66pc of Thailand's crude imports in 2016, but that percentage has since been steadily declining.

Crude from Asia-Pacific made up 14pc of Thailand's total imports in 2020, down from 15pc in 2019 and 19pc in 2016, according to the energy department data.

Crude from other regions accounted for 32pc of Thailand's total imports last year, up from 28pc in 2019 and just 14pc in 2016. Thailand's imports of US crude have risen in recent years. Thailand took delivery of around 61,000 b/d of US crude in 2020, mainly WTI and Bakken, as well as small volumes of Eagle Ford and medium sour Mars, according to data from oil analytics firm Vortexa. The volumes were marginally lower compared with imports of about 71,000 b/d in 2019 but were significantly higher than the 37,000 b/d of US crude that Thailand took in 2018. Thailand took only about 3,000-5,000 b/d of US crude back in 2016 and 2017, Vortexa data showed.

Thailand also increased its imports of African crude. Imports of Angolan crude jumped to 61,000 b/d in 2020 from 22,000 b/d in 2019 and just 8,000 b/d in 2017. Imports of Nigerian crude rose to 41,000 b/d in 2020 compared with 11,000 b/d in 2019. Thailand did not take any Angolan or Nigerian grades in 2016. Deliveries of Jubilee crude from Ghana to Thailand also rose to around 8,000 b/d in 2020 from less than 3,000 b/d in 2019, according to Vortexa. Thailand did not import crude from Ghana before 2019.

Imports from key Mideast Gulf crude suppliers have fallen. Saudi Arabia remains Thailand's main crude supplier and moved about 193,000 b/d of mainly Arab Light and Arab Medium crudes to Thailand in 2020, Vortexa data showed. This was a rise from 178,000 b/d in 2019 but lower than in previous years. Around 237,000-255,000 b/d of Saudi Arabian crude went to Thailand in 2016-2017. Thai imports of crude from the UAE — mainly Abu Dhabi Murban, Upper Zakum and Das grades — fell to 185,000 b/d in 2020 from around 210,000 b/d in 2019 and 270,000 b/d in 2018.

Thailand's imports of crude from Kuwait also dipped to 8,000 b/d in 2020 from 11,000 b/d in 2019 and around 13,000 b/d in 2016. Imports of Qatari crude, mainly Al-Shaheen and Qatar Marine, fell to 34,000 b/d in 2020 from around 64,000 b/d in 2019 and around 66,000 b/d in 2016.

By Rhalain Reyes

Thailand's crude imports (b/d)
	Dec-20	Month on month % ±	Year on year % ±
Middle East	357,679	-22.7	1.2
Far East	182,187	26.7	31.9
Others	229,458	-12.7	-33.3
Total	769,324	-11.5	-7.9
Source: Thailand's department of energy business

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