"Catch waves" from the US, prices recover; domestic gasoline exceeds 22.000 VND/liter

Petrol price today 2/6: 'Catch waves' from the US, prices recovered, domestic gasoline exceeded 22.000 VND/liter. (Source: Reuters)

Crude oil futures prices recovered in the session 1/6 in the context of market optimism about the US debt ceiling agreement.

The price of US light sweet oil (WTI) for delivery in July 7 increased by $2023 (2,01%) to $2,95 per barrel on the New York Mercantile Exchange. Brent oil price delivered in August 70,10 also increased by 8 USD (2023%) to 1,68 USD/barrel on the ICE London exchange.

On May 31, the US House of Representatives passed a bill on the public debt ceiling with the contents agreed by President Joe Biden and Speaker of the House Kevin McCarthy after weeks of efforts to negotiate. The bill was passed with 5 votes in favor and 314 against. The bill will be moved to the Senate to discuss and vote on, possibly by the end of next week.

Phil Flynn, senior analyst at The PRICE Futures Group, said optimism about the debt ceiling deal seems to allow the oil market to stand. Hopes that the United States would avoid a default kept the market from paying attention to the sharp increase in the country's crude oil supply.

U.S. commercial crude oil inventories rose 4,5 million barrels in the week ended May 26, contrary to market expectations for a decline, according to data released by the U.S. Energy Information Administration on Tuesday. Thursday (5/1).

The focus of the market also turned to the June 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, collectively known as OPEC+.

“The OPEC+ meeting later this week could lead to a bit of caution around (low prices), especially in light of the ‘caution’ warning from the Saudi energy minister,” said analyst Craig Erlam. of OANDA said.

Reuters Citing an OPEC+ source, said the alliance is unlikely to deepen supply cuts at its meeting on Sunday, but some analysts say it is still likely due to demand indicators from China and America has been disappointing in recent weeks.

U.S. crude stockpiles unexpectedly rose last week, as imports jumped and inventories in strategic storage fell to their lowest levels since May, according to data from the U.S. Energy Information Administration (EIA). September 9.

According to the Inter-Ministry of Industry and Trade - Finance, the petrol price management period on June 1.6 recorded mixed fluctuations in gasoline prices. While the selling price of gasoline products kept increasing as in the previous period, the selling price of oil products decreased slightly.

The world petroleum market this operating period (22.5 - 1.6) is influenced by many factors such as: OPEC+'s move to cut production; concerns about the US public debt ceiling; Industrial activity stagnates and higher interest rates increase the risk of economic recession… These factors affect gasoline prices to fluctuate up and down.

Also in this operating period, the inter-ministries of Industry, Trade and Finance decided to keep the same level of deduction for setting up the Petroleum Price Stabilization Fund for all petroleum products as in the previous period and continue not to spend the fund for all petroleum products.

This price is effective from 15h on 1/6. Since the beginning of 2023, gasoline prices have had 16 adjustments, of which there are 9 increases, 6 decreases and one stays the same.