The downward trend shows no sign of slowing down

World oil price

At the end of the last trading session of the week, oil prices fell more than 1% as the market balanced supply concerns against renewed economic concerns in the US and China.

Brent crude for July delivery fell 7 cents, or 81%, to $1,1 a barrel, while US WTI fell 74,17 cents, or 83%, to $1,2 /bin.

Both benchmark oil commodities fell about 1,5% from the previous week. With prices falling this week, both Brent and WTI marked their fourth consecutive week of declines.

According to Reuters, the dollar held modest gains against the euro, and headed for its biggest weekly gain since February as uncertainty around the US debt ceiling and monetary policy spurred the shift. towards safe-haven assets. A stronger dollar makes oil denominated in that currency more expensive for holders of other currencies.

“The lack of confidence in the economy is leading to a retreat to the safer dollar, while also fueling pessimism about oil demand,” said John Kilduff, partner at Again Capital LLC in New York. ".

Reuters The fear that the United States - the world's largest oil consumer - will enter a recession is growing, said. Negotiations on the US government debt ceiling have been adjourned. Add to that the fear of the banking crisis that has not subsided.

On May 12, US Federal Reserve Governor Michelle Bowman said the Fed may need to raise interest rates further if inflation remains high. She also emphasized that this month's economic data does not convince her that price pressures are easing.

“If inflation remains high and the labor market remains tight, additional monetary policy tightening is likely to be appropriate to achieve a sufficiently restrictive monetary policy stance that inflation declines over time. time," Bowman said in her preparatory speech for a meeting at the European Central Bank in Frankfurt, Germany, with a focus on the consequences of the recent collapse of several US banks. .

She expects the US policy rate to remain at a sufficiently limited level for a while to reduce inflation and create conditions to support a sustainable labor market.

Meanwhile, China's April consumer price data rose at a slower pace than in March, while worsening factory gate deflation raised doubts about the resilience. of the country after the Covid epidemic restrictions.

The market received some support from the forecast for an emerging supply deficit in the second half of the year, even as Iraqi Oil Minister Hayan Abdel-Ghani told Reuters that he does not expect OPEC+ to decide on further production cuts at its next meeting in Vienna on June 4.

An OPEC report on Thursday said the producer group expects July-December demand for its crude to be 7 bpd (bpd) higher than previously expected.

The market also received support after US Energy Secretary Jennifer Granholm signaled that the country could buy back oil for the Strategic Petroleum Reserve following completion of a congressional-mandated sale next month.

Domestic petrol price

Retail prices of petrol and oil in the country on July 13 are as follows:

MAI HUONG