Maintaining upward momentum, anchored at 4-month high

Recorded in the early morning hours of June 8, 2022, according to Vietnam time, the price of WTI light sweet crude oil delivered in August 2022 stood at $117.08/barrel, down $0.02/barrel during the session. However, compared to the same period on June 7, the price of WTI oil delivered in August 2022 has increased by $0.64/barrel.

Meanwhile, the price of Brent oil delivered in August 2022 stood at 120.71 USD/barrel, up 0.14 USD/barrel during the session and rose to 0.82 USD compared to the same time on 7/6.

Oil prices on June 8 maintained its upward momentum in the context of a weakening USD when many central banks planned to sharply increase interest rates.

The latest, the Australian central bank decided to sharply increase interest rates at 0.5 percentage points, much higher than the forecast of 0.2 percentage points, bringing the lending rate to 0.85%.

The outlook for global economic growth shows many optimistic signs as inflation is expected to cool down as freight rates decrease, supply chains, goods production are restored, and delivery speeds are fast. than…

Oil prices maintained their upward momentum today because the market was skeptical about OPEC +’s ability to increase output, while travel demand in the tourist season is forecasted to increase.

Oil demand is also expected to increase sharply when many countries enter the hot summer.

In the US, fuel prices in the US are being recorded at a record level, raising concerns about the US’s imposition of measures to limit oil exports.

Crude oil maintained its upward momentum for 6 consecutive weeks, as the market was led by concerns about shortage of supply.

The fact that Saudi Arabia raised the official selling price for Asian customers, right after China eased blockade measures in Shanghai and the capital Beijing, partly demonstrates the confidence of the Middle Eastern country in demand. oil of the main customer group, although these countries are still benefiting from cheap Russian oil.

Not only that, the fact that the US and Europe are considering allowing embargoed countries such as Venezuela and Iran to use oil to pay their debts also shows the difficulty of this group of countries in finding alternative sources of supply. However, unless these countries are completely removed from the embargo, and are allowed to freely export oil to the international market, the amount of oil they can put on the market this year will still be very large. limit.

Most of the current oil-producing countries still need large investment capital from European and American corporations to restore and start new projects, thus escaping from embargoes both on import and export. Import and financing are prerequisites before mass oil production can be increased. Although the possibility of the US lifting sanctions for Iran still exists, but the earliest time, according to Citibank, is the first quarter of next year, it is difficult for oil prices to cool down in 2022.

In addition, in the first three months of 2023, the amount of oil that Iran adds to the market can only average 0.5 million barrels per day, due to logistics problems as well as signing contracts.

Gasoline 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 down to 300 VND/kg (previous period set aside 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.

Domestic retail price of gasoline on June 8 specifically as follows: E5 RON 92 gasoline not exceeding 30,235 VND/liter; gasoline RON 95 not more than 31,578 VND/liter; diesel oil not exceeding 26,394 VND/liter; kerosene not exceeding 25,346 VND/liter and fuel oil not exceeding 20,901 VND/kg.

From the beginning of 2022 until now, domestic gasoline prices was adjusted up 11 times, making the price of gasoline RON 95 increase by 7,694 VND/liter; E5 RON 92 gasoline price increased by 7,071 VND/liter to 30,230 VND/liter, the highest level in history.

Data from the Ministry of Industry and Trade shows that the average price of finished gasoline on the Singapore market updated to June 6 increased by 2-3 USD/barrel compared to June 1 at 147.7 USD/barrel for RON 92 gasoline, RON 95 gasoline is 153.2 USD/bin. Notably, diesel on June 6 spiked up 170.6 USD/bin.

Meanwhile, the average world price of petroleum products in the middle of the previous operating period was 144 USD/ tank of RON 92 gasoline; 151.9 USD/ tank of RON 95 and 146,963 USD/diesel tank…