Oil prices continue to fall

World oil price

At 6:50 am on June 10, the price of WTI oil traded at 6 USD/barrel, down 70,17 USD/barrel while Brent oil traded at 1,48 USD/barrel, down 74,79 USD/ounce compared to the early hours of the morning.

Analysts said that oil prices weakened due to the impact of many factors such as the increase in US gasoline inventories, the slow recovery of the economy in China while the US and Iran have not yet reached a nuclear agreement.

According to a report by the US Energy Information Administration (EIA), last week, US gasoline inventories increased by 2,8 million barrels, higher than expected. This raises concerns about dwindling US fuel demand, while the peak summer driving season is underway.

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

Data from China's National Bureau of Statistics showed that the country's consumer price index (CPI) in May increased by 5 percent year-on-year, lower than experts' forecast for a 0,2 percent increase. The producer price index (PPI) decreased by 0,3% over the same period last year. That shows that China's consumption and production activities are still quite weak. This will put pressure on oil prices.

In addition, the fact that the US and Iran have not yet reached a nuclear agreement also caused oil prices to drop. Earlier, it was reported 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 few signals about the bullish outlook. Some investors expect oil prices to rise if the US Federal Reserve (Fed) will not raise interest rates at its meeting on June 13-14.

Demand in India, the world's third largest oil importer, also showed positive signs. In the last month, diesel sales in India were up 3% from a year earlier.

In addition, voluntary production cuts from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are likely to cause a deficit in oil supply and push oil prices higher.

Domestic petrol price

In the domestic market, gasoline prices today are applied according to the price at the afternoon session of June 1 of the inter-Ministry of Finance - Industry and Trade. Accordingly, the price of E6 RON5 gasoline increased by 92 VND/liter, the new price was 390 VND per liter; RON20.878 gasoline increased by 95 dong per liter, to 516 dong per 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 time stays the same.

Cong Hieu