Oil prices continue to fall

World oil prices

At 6:50 a.m. on June 10, WTI oil price was trading at 70.17 USD/barrel, down 1.48 USD/barrel, while Brent oil was trading at 74.79 USD/barrel, down 1.37 USD/ounce compared to early this morning.

Chart of world oil price movements in recent days. (Source: Oil Prices)

Analysts say that the weakening of oil prices is due to the impact of many factors such as: increased US gasoline reserves, slow economic recovery in China while the US and Iran have not yet reached a nuclear agreement.

U.S. gasoline inventories rose by 2.8 million barrels last week, more than expected, the Energy Information Administration (EIA) reported, raising concerns about a slowdown in U.S. fuel demand as the peak summer driving season gets underway.

Meanwhile, China's economy - the world's leading oil importer - is still recovering quite slowly.

China's consumer price index (CPI) rose 0.2% year-on-year in May, below the 0.3% increase forecast by analysts, while the producer price index (PPI) fell 4.6% year-on-year, indicating that China's consumption and manufacturing activity remain weak, which will put pressure on oil prices.

In addition, the fact that the US and Iran have not yet reached a nuclear deal has also caused oil prices to fall. Previously, there was information that the US would lift sanctions on Iran to export oil, while Tehran would limit its nuclear program by reducing uranium enrichment. But both the US and Iran later denied that they were close to a nuclear deal.

However, the oil market also received some bullish signals. Some investors expect oil prices to rise if the US Federal Reserve (Fed) does not raise interest rates at its meeting on June 13-14.

Demand in India, the world’s third-largest oil importer, is also showing signs of improvement. Diesel sales in India rose 13% last month from a year earlier.

Additionally, voluntary production cuts from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are likely to create an oil supply deficit and push oil prices higher.

Domestic gasoline prices

In the domestic market, today's gasoline prices are applied according to the price at the afternoon session of June 1 by the Ministry of Finance - Industry and Trade. Accordingly, the price of E5 RON92 gasoline increased by 390 VND/liter, the new price is 20,878 VND/liter; RON95 gasoline increased by 516 VND/liter, to 22,015 VND/liter.

Meanwhile, oil products were all adjusted down. Specifically, diesel oil decreased by 11 VND/liter compared to the current retail price, not higher than 17,943 VND/liter; kerosene decreased by 198 VND/liter, not higher than 17,771 VND/liter; fuel oil decreased by 275 VND/kg compared to the current retail price, not higher than 14,883 VND/kg.

Since the beginning of the year, gasoline prices have undergone 16 price adjustments, including 9 increases, 6 decreases, and 1 unchanged.

Cong Hieu

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Source: https://vtc.vn/gia-xang-dau-hom-nay-9-6-gia-dau-tiep-tuc-giam-ar798697.html