1) Thai stock market overview
Thailand’s SET Index closed at 1,535.16 points, increased 1.75 points or 0.11% with a trading value of 61 billion baht. The analyst stated that the Thai stock market moved narrowly as the market still sees uncertainty in Thai politics over the forming of a new government as well as the probability of Fed raising or holding rates after the announcement of its CPI for July. The analyst believed the Thai stock market to move in a sideways direction next week and a lack of catalyst will result in an outflow.
2) Thai consumer confidence drops for the first time in 14 months over political uncertainty
Thailand’s consumer confidence declined for the first time in 14 months in July, pressured by concerns over political uncertainty after the general election on May 14 in which the kingdom still could not form a new government.
The survey showed that the consumer confidence index of the University of the Thai Chamber of Commerce fell to 55.6 in July from 56.7 in June. Still, the reading is in the positive territory.
According to the survey, consumers were worried about uncertainty in the process of forming a new government after the Move Forward Party, who won the majority of seats, could not secure its position as the leading party for the coalition government. Now, the Pheu Thai Party is switching stance to join other political parties in hope to get approval from senators.
3) Global oil demand hits record in June; IEA warns August could bring another price peak
Global Oil Demand Hits Record in June; IEA Warns Prices Could See Another Peak in August
The International Energy Agency reported on Friday that global oil demand has reached an all-time high last month due to robust consumption in China and other countries, meaning it could lift up prices.
In its monthly report, the International Energy Agency (IEA) stated that global oil demand is “scaling record highs” as world fuel use averaged 103 million barrels per day for the first time in June. The IEA said that rising oil consumption for power generation and soaring Chinese petrochemical activity were the reasons for the demand increases, and that August could see a further peak.
Oil demand is expected to rise by 2.2 million bpd in 2023 to 102.2 million bpd, with 70% of the growth coming from China.
The agency forecasts that “lackluster economic conditions, tighter efficiency standards, and new electric vehicles” will reduce oil use next year, causing global demand growth to slow down to 1 million bpd.
Meanwhile, Saudi Arabia’s dramatic production cuts led to a 910,000 bpd decrease in world oil supply in July, bringing the total to 100.9 million bpd. This year, U.S. output is expected to be the primary driver of a global increase in oil production of 1.5 million bpd, to 101.5 million bpd.
