Economic instability and the volatility of supply and demand have caused wild fluctuations in the price of oil. Oil price volatility impacts the cost and revenue of the petroleum and petrochemical supply chain. Thorough knowledge of the variables of oil price is crucial. Thus, TBU’s Price Risk Management department is set up to closely monitor the oil market situation and crude oil and refined products' price movements by regions. A prudent use of future market mechanism is also instrumental to PTT’s function to provide the government and companies with valuable information on global oil market outlook in order to achieve business goals. In addition, the department provides risk management service to companies in groups such as aviation and industrial sectors. Participation in the future market with detailed analysis allows an appropriate selection of risk management tools, such as derivatives swap or options.
Wild fluctuations of oil price in the past few years have significant bearing on energy firms and challenge their ability to manage risks resulting from price movements. PTT Group sets up PRISM (Petrochemical and Refining Integrated Supply Chain Management), a working group with the mission to monitor oil market situation, provide future trends, as well as share knowledge for the purpose of building people’s capability and expertise in price risk management. PRISM also sets the PTT Group price risk management standard, with efficiencies comparable to that of leading international trading companies.