Oil price increase likely after Japan quake

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BANGKOK, 14 March 2011 (NNT) – Prices of petroleum products might increase following a rocketing demand in Japan after some of its refineries were damaged by the recent 8.9 magnitude and tsunami attack.

Energy expert Manoon Siriwan estimated that petroleum product prices in the global market might go up in the beginning of this week after a slight decrease last Friday when the disasters struck Japan.

Some refineries and nuclear power plants in Japan were damaged by the quake and tsunami, leading to a rising demand for petroleum products in the far-eastern country; however, effects on the overall economy must be assessed again as the deteriorating economy may lead to less demand for oil.

Mr Manoon admitted that the damage at nuclear power plants in Japan have triggered concerns that the plan to construct nuclear power plants in Thailand might be revised. He reiterated that the reactor meltdown in Japan was caused by the earthquake and tsunami, not by the deficiency of the power plants.

The energy expert added that the damaged nuclear plants had been constructed since the old days when no preventive measure was established for the impact from such an extremely severe seismic activity.