The Energy Policy and Planning Office (Eppo) expects global oil prices to decrease after Opec and its allies agreed to increase petroleum production in a cautious move in line with global economic recovery.
Opec said on April 1 it would gradually increase production from May to July and monitor how the world is recovering from the pandemic.
Opec and its allies last year sharply reduced petroleum production to shore up prices, following a demand collapse during the pandemic caused in part because of travel restrictions in many countries.
The oil cartel plans to add 350,000 barrels per day (BPD) in May, 350,000 BPD in June and 400,000 BPD in July, said Eppo director-general Wattanapong Kurovat, citing its latest agreement.
Saudi Arabia plans to add another 1 million BPD during the same period.
Opec and its allies increased their forecast of world economic growth this year to 4.8% from 4.4%, despite the ongoing impact of the pandemic and doubts in some segments over Covid-19 vaccine effectiveness.
Other non-Opec members, led by Russia, also decided to increase oil production as they expect a recovery in oil demand, even as many countries deal with new outbreaks of Covid-19.
"While the global economy is showing signs of a healthy recovery in 2021, oil demand is currently lagging. However, it is forecast to pick up in the second half of 2021," Opec said in its monthly report.
Oil prices on the New York Mercantile Exchange increased by 4% to US$61.5 per barrel, while Brent crude oil prices rose by 3.5% to $65 per barrel.
In Thailand, despite the fresh Covid-19 outbreak, which may decrease domestic oil demand, retailers have been told to prepare enough oil for motorists during the six holidays for the Songkran festival, when people often travel across the country, said Mr Wattanapong.