Peak in 2023; domestic gasoline prices increase sharply

Today's gasoline price August 2, according to analysts, oil prices are on track to reach their highest level in 2023.

Giá xăng dầu hôm nay 2/8: Đạt đỉnh của năm 2023; giá xăng trong nước tăng mạnh

Gasoline prices today, August 2: Reaching the peak of 2023; domestic gasoline prices increase sharply. (Source: Industry and Trade Newspaper)

World oil prices on August 2 (Vietnam time) fluctuated slightly. Specifically: WTI crude oil prices decreased by 0.61% to 81 USD, Brent oil prices decreased by 0.5% to 85 USD/barrel. Analysts at the National Australia Bank said that oil prices are on track to reach their highest level in 2023.

Experts expect Saudi Arabia to extend its voluntary oil output cut of 1 million barrels per day (bpd) for another month (including September) to support the market at a meeting with other major producers on August 4.

Accordingly, the market is paying attention to the ministerial meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC+. Experts from the National Australia Bank (NAB) predict that Saudi Arabia will extend its plan to cut production by 1 million barrels per day into September.

“Crude oil is in a correction phase, driven by a strong dollar index and responding to an ‘overbought’ market,” said Dennis Kissler, senior vice president of trading at BOK Financial.

The dollar index, which measures the greenback against a basket of six major currencies, rose 0.4%. A stronger dollar makes crude oil more expensive for investors holding other currencies.

Data from the American Petroleum Institute (API) released on August 1 showed that US crude oil inventories unexpectedly fell by 15.4 million barrels in the week ending July 28, more than 10 times higher than analysts' expectations of a 1.37 million barrel decrease. Along with oil reserves, US gasoline reserves also fell, but by a more modest 1.7 million barrels. However, this reserve level was still higher than analysts' estimates (a decrease of 1.3 million barrels). Distillate product reserves fell by 510,000 barrels, while analysts estimated an increase of 112,000 barrels.

The inventory data helped crude futures rise in after-hours trading. Brent crude rose 32 cents, or 0.4%, to $85.75 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 40 cents, or 0.5%, to $82.22 a barrel.

To shore up China's private sector amid a sluggish economic recovery from a long period of Covid restrictions, ministries, regulators and the People's Bank of China on August 1 pledged more financial support for small businesses.

Meanwhile, data released on the day showed manufacturing activity in the eurozone grew at its fastest pace since May 2020 in July.

Domestic retail gasoline prices on the morning of August 2 were applied according to the adjustment session on August 1 by the Ministry of Finance - Ministry of Industry and Trade.

E5RON92 gasoline price is not higher than 22,791 VND/liter, an increase of 1,152 VND/liter.

RON95-III gasoline price is no higher than VND23,963/liter, an increase of VND1,171/liter.

The price of 0.05S diesel is not higher than VND20,612/liter, an increase of VND1,112/liter.

Kerosene price is not higher than 20,270 VND/liter, an increase of 1,081 VND/liter.

The reason for the increase in domestic gasoline prices is that the world gasoline prices have been fluctuating continuously in recent days and have mainly been on a strong upward trend. Therefore, it is likely that the Ministry of Finance and the Ministry of Industry and Trade will also adjust domestic prices according to market rules.

According to records, the average price of RON92 gasoline (used to blend E5 gasoline) in Singapore updated from July 24-26 was 99.12 USD/barrel, the average price of RON 95 gasoline was 104.8 USD/barrel. Meanwhile, in the previous cycle, the average price of RON 92 gasoline in the Singapore market was 93.12 USD/barrel, the price of RON95 gasoline was 98.92 USD/barrel.

Compared to the previous cycle, the average price of RON92 gasoline increased by 6 USD/barrel, the average price of RON95 gasoline increased by 5.88 USD/barrel. Similarly, the average price of oil on the Singapore market updated from July 24-26 also increased compared to the previous cycle.

Since the beginning of the year, gasoline prices have undergone 22 adjustments, including 12 increases, 7 decreases, and 3 unchanged.

Source