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Oil acceleration week

Petrol price today May 29: Oil peaks in 3 months, the rising pulse is not over yet

Continually inching slightly in the trading sessions of the week helped Brent and WTI oil prices have another climbing week, with Brent nearing the level of 120 USD/barrel.

At the end of the trading week, Brent oil price rose to 119.43 USD/barrel, nearly touching 120 USD/barrel, while WTI oil price increased to 115.1 USD/barrel. The prices of these two commodities marked a week of gains for Brent with 6% and WTI 1.5%.

Edward Moya, senior market analyst at data and analytics company OANDA (USA) said: Crude oil prices due to the tight oil market and this will continue to happen in the context of US stockpiles dwindling.

Prices are up about 50% so far this year.

OPEC+ is expected to stick to last year’s oil output agreement at its June 2 meeting and raise its July output target to 432,000 bpd.

In fact, tight supply pressure and strong recovery in consumption demand, combined with a weakening US dollar, have supported gasoline prices this week to rise sharply, soaring to a 3-month peak.

Crude oil prices entered the trading week from May 23 with a downtrend amid concerns about the slow recovery of oil demand in China and easing supply pressure.

Petrol prices today May 29: Oil's acceleration week - Photo 1.

Gasoline prices today May 29: The week of oil acceleration.

The prospect of demand for crude oil cooled down when Shanghai recorded a new case of Covid-19 outside the isolation area after many days without new infections, while major economies such as the US, China, and the EU .. . were all downgraded their growth forecasts, much lower than those forecasted at the beginning of the year.

The fact that many EU countries accept for companies to open accounts in ruble at banks designated by Russia to perform gas trading contracts also put a lot of pressure on crude oil prices.

However, when concerns about a Russian crude oil embargo increasing day by day, the dollar weakened and China kept its opening plan, returning to a normal state when the number of Covid-19 infections was well controlled, crude oil prices jumped sharply.

The bullish momentum of crude oil continued to be consolidated in the following sessions when the news that the US was considering export restrictions, and oil supply from Kashagan oil field – Kazakhstan’s offshore oil field – was cut by nearly 1 percent. /2 output from the beginning of 2022 is distributed.

Oil consumption demand is also expected to recover strongly when the supply chains of goods and production are restored thanks to the excitement of the Chinese market.

By the session on May 27, when the dollar depreciated sharply and Shanghai (China) began to gradually ease the blockade measures, crude oil prices skyrocketed.

The series of bullish sessions of crude oil continued to be maintained in the last session of the week when the market continued to record the forecast that the demand for crude oil consumption would increase sharply in the summer.

According to data just released by the US Energy Information Administration (EIA) on May 25, US gasoline inventories last week decreased by 482,000 barrels last week, to 219.7 million barrels. Demand for oil in the US is forecasted to continue to increase strongly when the tourist season takes place in the summer in the US.

At the end of the trading week, oil price on May 29 recorded the price of WTI light sweet crude oil delivered in July 2022 standing at 115.07 USD/barrel; Meanwhile, the price of Brent oil delivered in July 2022 stood at $119.25/barrel. This is the highest level in the past 3 months.

Gasoline prices In the domestic market:

On May 23, the Inter-Ministry of Industry, Trade and Finance announced the base prices for petroleum products for the price management period from May 24.

Accordingly, at the operating period on May 23, the inter-Ministry of Industry and Trade – Finance decided to stop setting up and spending the petrol price stabilization fund (BOG Fund) for gasoline so that the domestic gasoline price would be lower than the average price. lower than the increase in world gasoline prices. In addition, the inter-ministerial decision to increase the setting up of the BOG Fund for oils in order to maintain the BOG Fund to have operating tools in the near future.

Specifically, to set up the BOG Fund for gasoline products E5 RON 92 at 0 dong/liter (previous period was 100 dong/liter) and RON 95 gasoline at 0 dong/liter (previous period was 100 dong/liter). liter), diesel at 300 VND/liter, kerosene at 300 VND/liter and fuel oil at 400 VND/kg. Expenditure of BOG Fund for E5 RON 92 gasoline at 100 VND/liter and RON 95 gasoline at 300 VND/liter (previous period was not spent), oil products were not spent.

Petrol prices today May 29: Oil's acceleration week - Photo 2.

Economic experts said that, in the context of gasoline prices continuing to rise “hot”, the stabilization fund has been exhausted, the most feasible solution to regulate prices is to reduce taxes and fees.

May 29, domestic retail price of petrol Specifically as follows: After making deductions and spending using the Petroleum Price Stabilization Fund, the current selling prices of popular consumer petroleum products in the market are as follows: E5 RON 92 gasoline price is not higher than VND 29,633 /liter; RON 95 gasoline price is not higher than 30,657 VND/liter; the price of diesel oil 0.05S is not higher than 25,553 VND/liter; the price of kerosene is not higher than 24,405 VND/liter; price of mazut oil 180CST 3.5S is not higher than 20,598 VND/kg.

Economic experts say that, in the context of gasoline prices continues to increase “hot”, the stabilization fund has been exhausted, the most feasible solution to regulate prices is to reduce taxes and fees. The reduction of excise tax on gasoline will certainly help “cool down” the selling price of this item, reduce inflationary pressure, and avoid having too great an impact on the lives of people and businesses.

The story of petrol prices was also discussed a lot at the 3rd session, the 15th National Assembly. According to National Assembly member Le Thanh Van, the price of gasoline has been pushed up to the current high, negatively affecting production activities and people’s daily life, and may lead to concerns about inflation.

NA delegate Nguyen Thi Suu (Deputy Head of the National Assembly Delegation in charge of Thua Thien – Hue province) also said that some fees constituting petrol prices such as special consumption tax should be reduced…

Previously, Chairman of the National Assembly’s Economic Committee Vu Hong Thanh stated “countermeasures” on taxes, responding to the sharp increase in domestic gasoline prices. At the inspection report, Chairman of the National Assembly’s Economic Committee said that the upward trend in basic commodity prices, combined with the impact of the escalating Russia-Ukraine conflict, caused energy prices to rise to a record high. All international organizations forecast the scenario that the average oil price in 2022 will increase by about 20-30 USD (ie about 30-40%, from the average of 69 USD/barrel in 2021 to the average of 90-100 USD in 2021. USD/barrel in 2022). Golman Sachs Bank forecasts that oil prices may rise to $125/barrel in the third quarter of 2022.

Whereby, petrol prices increase will greatly affect domestic production costs, putting pressure on inflation in 2022. In the current context, the Economic Committee said, there are opinions that besides paying special attention to risks For inflation from outside, it is necessary to study the scenario of continuing to reduce excise tax to cope in the event of large fluctuations in world oil prices, as well as to postpone and delay the increase of taxes. costs to stabilize the prices of other consumer goods.

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