Gasoline prices expected to fall next week?

World oil prices plunged last week despite huge production cuts by OPEC+ and the seventh consecutive decline in the number of active US oil and gas rigs.

Accordingly, both Brent and WTI oil prices fell more than 3% last week, which is the reason why domestic gasoline prices are expected to decrease in the July 1 adjustment period.

Domestic gasoline prices expected to decrease?

Responding to VTC News, a major petroleum enterprise in the Southern region predicted that if the management agency does not affect the petroleum price stabilization fund, domestic gasoline prices in the management period next week (July 1) will likely decrease by about 200 - 500 VND/liter, diesel oil may also decrease by 100 - 300 VND/liter.

Gasoline prices are forecast to decrease next week. (Photo: Cong Hieu)

Currently, domestic gasoline prices are being applied according to the June 21 management session of the Ministry of Finance - Industry and Trade.

Specifically, the prices of E5 RON92 gasoline and RON95 gasoline remain the same as current prices, not higher than VND20,878/liter and VND22,015/liter, respectively.

Meanwhile, diesel price increased by 146 VND/liter compared to the current retail price, not higher than 18,174 VND/liter; kerosene increased by 133 VND/liter, not higher than 17,956 VND/liter and mazut price decreased by 132 VND/kg, not higher than 14,587 VND/kg.

In this operating period, the competent authority set aside the Petroleum Price Stabilization Fund for E5 RON92 gasoline at 191 VND/liter (previous period 228 VND/liter), RON95 gasoline at 139 VND/liter (previous period 180 VND/liter); diesel at 100 VND/liter (previous period 200 VND/liter); kerosene at 100 VND/liter (previous period 200 VND/liter); mazut at 100 VND/kg (previous period 200 VND/kg).

At the same time, do not spend the price stabilization fund on all gasoline and oil products.

Since the beginning of the year, gasoline prices have undergone 18 adjustments, including 9 increases, 6 decreases, and 3 unchanged.

How do world oil prices fluctuate?

Traders are concerned that rising interest rates could dampen demand despite signs of tighter supplies including lower US crude inventories, sending global crude prices tumbling last week.

Oil prices have plunged despite massive OPEC+ production cuts and a seventh straight decline in the number of active US oil and gas rigs.

The slight decline in oil prices on the final trading session of the week has reinforced the downward trend of oil prices this week. Both Brent and WTI experienced a weekly decline.

Bryan Mound Strategic Petroleum Reserve in Freeport, Texas, USA. (photo: Reuters)

Accordingly, Brent oil fell to 73.85 USD/barrel, WTI fell to 69.16 USD/barrel, equivalent to a decrease of more than 3% over the past week.

Also last week, the US Energy Information Administration (EIA) said that US crude oil inventories last week fell by 3.8 million barrels to 463.3 million barrels, contrary to analysts' expectations of an increase of 300,000 barrels in a Reuters poll.

Meanwhile, US gasoline inventories increased by about 480,000 barrels to 221.4 million barrels; along with the increase in gasoline inventories, US distillate inventories, which include diesel and heating oil, also increased by about 430,000 barrels to 114.3 million barrels.

With traders buying WTI oil as it is, Oilprice predicts that oil prices may continue to fall next week.

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Source: https://vtc.vn/gia-xang-dau-du-bao-giam-trong-tuan-toi-ar801824.html