Oil price exceeds 123 USD/barrel

Time 13:50 (Vietnam time), oil prices Brent for July delivery rose $2.19, or 1.8 percent, to $123.86 a barrel, after jumping to $124.10 a barrel, its highest level since March 9.

Oil prices rose sharply. (Illustration image – Photo: istock)

Brent oil price for August delivery also increased by 2.25 USD to 119.85 USD/barrel; while the price of New York light sweet oil (WTI) increased by $4.05 (3.5 percent) to $119.12 per barrel.

On May 30, European Council President Charles Michel said that European Union (EU) leaders supported a ban on most oil imports from Russia, after reaching a compromise with some countries opposed the previous ban.

On Twitter, the official said that EU leaders agreed on an immediate ban on more than two-thirds of oil imports from Russia, thereby cutting a huge financial source of the EU. Russia. According to the official, this is a decision to exert maximum pressure on Russia.

Tina Teng, an analyst at financial services company CMC Markets (UK), said that in the face of supply stress, oil prices are heading towards a high in March.

In addition, the reopening of China is also a factor supporting the rise in oil prices. In March, oil prices spiked to their highest levels since 2008 and are up more than 55% year-to-date.

From June 1, the lives of people in Shanghai (China) will gradually return to normal, when the “passenger tickets” issued by residential buildings for people to go out for a few hours will be removed. , public transport will resume and people can return to work.

The increase in oil prices was also due to a supply shortage from the Organization of the Petroleum Exporting Countries and its allies (OPEC+). In July 2021, OPEC+ agreed to maintain its policy of increasing production at 400,000 bpd. However, in fact, oil production of this group has dropped sharply. In April, OPEC+ production fell below its target of 2.6 million bpd, of which Russia accounted for 50% of the shortfall.

OPEC+ is expected to stick to the 2021 agreement at its meeting on June 2, with a modest increase in output in July, despite calls from Western countries for a rapid increase in output to limit the rise of OPEC+. oil prices.

OPEC+ members say that the oil market is in balance and that the recent price rally has nothing to do with fundamentals.

Any new embargo on Russian oil will further strain the already tight supply market, amid surging demand for gasoline, diesel and jet fuel ahead of the peak season. travel in the US and Europe.

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