Brent oil increased, WTI oil decreased slightly

Today's oil and gas prices, May 25, at the beginning of the session, Brent oil prices increased to more than 78 USD/barrel, WTI oil prices decreased slightly.

Giá xăng dầu hôm nay 31/1: Các ngân hàng trung ương lớn chuẩn bị tăng lãi suất gây áp lực lên giá dầu

Oil prices today, May 25, at the beginning of the session, Brent oil price increased to more than 78 USD/barrel, WTI oil decreased slightly. (Source: Bloomberg)

According to Reuters , oil prices continued to increase by 2% at the end of the trading session on May 24 after the market received information about a sudden sharp decrease in US crude oil reserves and a warning from the Saudi Arabian Energy Minister, raising the prospect of OPEC+ production cuts. Oil prices have increased for three consecutive sessions since the beginning of the trading week.

Brent crude for July delivery rose $1.52, or 2%, to $78.36 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.43, or 2%, to $74.34 a barrel.

On May 24, the US Energy Information Administration (EIA) said that US crude oil reserves unexpectedly fell sharply by 12.5 million barrels to 455.2 million barrels due to a decrease in imports. This is a shocking decrease compared to the 800,000 barrel increase predicted by analysts.

U.S. gasoline stocks also fell 2.1 million barrels to 216.3 million barrels, while distillate stocks fell 600,000 barrels to 105.7 million barrels, the EIA said.

Gasoline and oil inventories fell ahead of the U.S. Memorial Day holiday, which falls on May 29 this year. The holiday marks the start of the peak summer travel season and higher fuel demand.

“Refineries are running at full capacity to meet demand,” said Phil Flynn, an analyst at Price Futures Group. Commenting on the recent oil price moves, Flynn stressed that oil prices have been too focused on the developments in the US debt ceiling negotiations and the possibility of US interest rates, and have not really focused on the supply and demand side, which has tightened in recent weeks.

Last month, US Federal Reserve officials broadly agreed that the need for further rate hikes "has become less certain" and that the recent 25 basis point rate hike could be the last, Reuters reported.

Meanwhile, Saudi Arabia’s energy minister warned short sellers betting on lower oil prices to “watch out” for losses. Some investors took his warning as a signal that OPEC+ could consider further production cuts at its June 4 meeting.

According to Craig Erlam, senior market analyst at OANDA, the oil price rally was supported by the latest short-selling warning from Saudi Arabia.

In another development, there is still no sign of progress in negotiations on raising the US debt ceiling while the June 1 deadline for raising the debt ceiling or the risk of default is approaching.

During the adjustment of retail gasoline prices on May 22, gasoline prices increased across the board. After the adjustment by the Ministry of Industry and Trade and the Ministry of Finance, the price of RON 95-III gasoline increased to VND21,490 (up VND490), and E5 RON 92 gasoline was VND20,480 (up VND350) per liter.

Prices of some oil products increased and some decreased. Specifically, diesel oil is 17,950 VND per liter, an increase of 300 VND. Kerosene has a new price of 17,960 VND, a decrease of 10 VND, and fuel oil has increased by 290 VND, with a new price of 15,150 VND/kg.

In this adjustment period, the regulatory agency has decided to set aside a price stabilization fund of 300 VND for all types of gasoline.

In the most recent adjustment period (May 11), gasoline prices were adjusted down by the Ministry of Finance and Industry and Trade.

Source