Energy Minister Sontirat Sontijirawong said after a meeting that the measure would take effective tomorrow (September 18).

The reduction was a step in preparation for a possible surge in local oil prices after the drone attacks on two major oil-processing facilities of Saudi Arabia’s Aramco.

Sontirat added that the attacks in Saudi Arabia will prompt the global crude oil price to peak at between US$60 and $70 per barrel, adding that the cut in the Oil Fund’s contribution is sufficient to deal with the situation.

He also said that in case the global oil price spikes beyond $70 per barrel, he will call a meeting with the committee again to launch more measures, though he said he is confident the price will not exceed $70 per barrel.