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US crude oil prices suddenly fell sharply

Gasoline prices today 2/6: US crude oil prices suddenly fell sharply

Recorded in the early morning of June 2, 2022, according to Vietnam time, the price of WTI light sweet crude oil delivered in July, 2022 stood at 113.52 USD/barrel, down 1.74 USD/barrel during the session.

Meanwhile, the price of Brent oil delivered in August 2022 stood at 114.47 USD/barrel, down 1.82 USD/barrel during the session.

Gasoline prices today June 2: US crude oil prices suddenly dropped sharply - Photo 1.

Gasoline prices today June 2: US crude oil prices suddenly dropped sharply.

Oil prices dropped sharply on June 2 after the EU announced an embargo on two-thirds of oil imports from Russia, mainly because the crude oil market recorded information about OPEC considering removing Russia from the agreements. oil deal.

Analysts say that if OPEC’s decision is implemented, it will pave the way for Saudi Arabia, the UAE and other oil exporting countries in OPEC to increase production. This means that oil supply will increase, not decrease because previously, Russian crude oil had difficulty finding output before a series of US and Western sanctions.

Oil prices fell sharply today because the dollar was stronger thanks to the expectation that the Fed would raise interest rates again.

In the other direction, the reopening of China’s commercial centers and industrial zones continued to be a factor to support oil prices not to fall too deeply in session 2/6.

Although not yet operating at full capacity, restaurants and shops in China have been reopened. Despite containment measures in nearly 50 major cities, China’s oil imports in April still reached 10.5 million bpd, compared with 9.82 million bpd in the same period last year and 10 .06 million bpd in March.

China’s manufacturing PMI (Purchasing Management Index, a measure of the economic “health” of the manufacturing industry) in May also reached 49.6, higher than market expectations of 48. . Along with that, the non-manufacturing PMI, including the construction index, increased sharply from 41.9 to 47.8, according to the country’s economic support commitments. (If the PMI is above 50, it means that manufacturing activity is expanded compared to the previous month. If the PMI is at 50, there is no change in production. production activities tend to shrink).

Thus, with the expectation that Shanghai will become a model for China’s upcoming anti-epidemic policy, that is, gradually opening up after a long time of preventing the epidemic, as well as maintaining the testing policy while ensuring other activities. With life mostly returning to normal, analysts are expecting a sharp increase in oil consumption in the manufacturing and transportation sectors in China. In particular, China is still benefiting greatly from buying cheap oil from Iran and Russia, benefiting greatly in terms of costs.

Petrol prices in the domestic market

Domestically, from 3:00 p.m. on June 1, according to the inter-Ministry of Industry and Trade – Finance’s decision, each liter of E5 RON 92 gasoline has increased by 600 VND, RON 95 by 920 VND and oil products by 310 – 940 VND/ liter.

After adjustment from the Ministry of Industry and Trade – Finance, the price of RON 95 gasoline from 15:00 on June 1 has exceeded 31,000 VND/liter, at 31,570 VND; E5 RON 92 gasoline also increased to 30,230 VND / liter. This is the 5th consecutive increase of gasoline prices. Since the beginning of the year, gasoline prices have increased 11 times and decreased 3 times.

Based on market movements and price management objectives, the Ministry of Industry and Trade – Finance also decided not to set up the BOG Fund (Price Stabilization Fund) for gasoline, reducing the setting up of the BOG Fund for petroleum. diesel to 100 dong/liter (previous period was set at 300 dong/liter), reduce the setting up of the BOG Fund for kerosene to 100 dong/liter (previous period was 300 dong/liter) and reduce the provisioning BOG fund for fuel oil fell to 300 VND/kg (previous period was set up at 400 VND/kg); at the same time, spending using the Petroleum BOG Fund for E5 RON 92 gasoline at 100 VND/liter and RON 95 gasoline at 500 VND/liter (last period spent 300 VND/liter), non-expensive oil products.

The retail price of gasoline in the country on June 2 is as follows: E5 RON 92 gasoline does not exceed 30,235 VND/liter; gasoline RON 95 not more than 31,578 VND/liter; diesel oil not exceeding 26,394 VND/liter; kerosene oil is not more than 25,346 VND/liter and fuel oil is not more than 20,901 VND/kg.

Previously, in the corridor of the National Assembly on June 1, about information about gasoline prices continuing to increase, Minister of Industry and Trade Nguyen Hong Dien affirmed that currently, gasoline prices in Vietnam are lower than world prices.

According to Minister Dien, in principle, an increase in gasoline prices will increase input prices, thereby increasing production costs, affecting the implementation progress of the socio-economic recovery program. Minister Dien shared with the people about this. But in the opposite direction, according to Minister Dien, Vietnam’s economy has a very high openness, so our goods are mainly made for export. the right value, invisible medium is causing damage to the country’s economy.

Besides, Vietnam is a trading partner of many countries and territories, so if we “squeeze input prices”, countries can sue us for anti-dumping, anti-subsidy, even is currency manipulation. Not to mention, the consequence of maintaining gasoline prices too low is the situation of smuggling gasoline across the border. Therefore, it is necessary to consider and calculate carefully, not say one way.

Regarding the solution, the Minister of Industry and Trade said, on the one hand, we still have to try to use tools, including taxes, as well as control the market to reduce prices.

In the event that gasoline prices rise too high, it is necessary to consider tools such as welfare policies to support the disadvantaged. The objective is to control prices, ensure effective management both domestically and in accordance with international regulations and laws.

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