Brent oil climbs, surpasses $83/barrel

Gasoline and oil prices today, July 26. At the end of the trading session on July 25, oil prices increased to the highest level in 3 months.

Giá xăng dầu hôm nay 26/7: Dầu Brent băng băng leo dốc, vượt mốc 83 USD/thùng

Oil prices today, July 26. At the end of the trading session on July 25, oil prices increased to the highest level in 3 months. (Source: Reuters)

The rise in oil prices is being fueled by a number of factors, including signs of tighter supplies and the Chinese government's commitment to strengthening the world's second-largest economy .

Brent crude rose 90 cents, or 1.09 percent, to $83.64 a barrel. During the session, Brent crude had hit $83.87 a barrel, its highest level since April 19.

US West Texas Intermediate (WTI) crude futures also rose 89 cents to $79.63 a barrel. The session high for WTI was $79.90 a barrel, the highest since April 19.

Both benchmarks have risen for four consecutive weeks. According to Reuters, the expected tightening of supply due to production cuts by OPEC, Russia and their allies has been the main factor supporting the continuous rise in oil prices in recent times.

Brent crude is currently in contango - a price structure that suggests traders perceive supply to be tight.

“The market is becoming more concerned about the trend of tightening oil supplies and it is becoming increasingly clear to the naysayers that the expected demand decline is not going to happen,” said analyst Phil Flynn of Price Futures Group.

In China, the world's second-largest oil consumer, leaders have pledged to step up economic policy support.

Limiting oil price gains was some economic data from Europe and the US.

In the euro zone, business activity contracted more than expected in July as demand in the bloc's services sector fell while factory output fell at the fastest pace since the Covid-19 pandemic first emerged, a recent study showed.

According to the study, the HCOB composite purchasing managers' index (PMI) for the eurozone in July, compiled by S&P Global and considered a good gauge of overall economic health, fell to 48.9 (an eight-month low) from 49.9 in June.

Paolo Grignani at Oxford Economics commented that the data shows the risk of eurozone GDP shrinking in the third quarter is increasing.

Meanwhile, in the US, the PMI fell to 52 in July from 53.2 in June, its lowest level in five months, as growth in the services sector slowed. Falling input prices and slower hiring suggest the Federal Reserve may be making progress on key fronts in its efforts to reduce inflation.

Markets expect the Fed and the European Central Bank (ECB) to raise interest rates by 0.25 percentage points at their meetings this week.

On July 25, data from the American Petroleum Institute (API) showed that US crude oil and distillate inventories increased last week, while gasoline inventories decreased. Specifically, crude oil inventories increased by about 1.32 million barrels in the week ending July 21. Gasoline inventories decreased by 1.043 million barrels, while distillate inventories increased by 1.614 million barrels.

In the domestic market, the selling prices of gasoline and oil today are applied according to the prices at the management session on the afternoon of July 21 of the Ministry of Finance - Ministry of Industry and Trade. Accordingly, gasoline and oil prices are adjusted to increase sharply.

E5RON92 gasoline price is not higher than 21,630 VND/liter, an increase of 1,220 VND/liter.

RON95-III gasoline price is no higher than VND22,790/liter, an increase of VND1,300/liter.

The price of 0.05S diesel is not higher than 19,500 VND/liter, an increase of 890 VND/liter.

Kerosene price is not higher than 19,180 VND/liter, an increase of 860 VND/liter.

In this management period, the Ministry of Finance and the Ministry of Industry and Trade decided not to set aside and not to spend the price stabilization fund for all petroleum products.

Source