World oil prices
Reuters reported that oil prices rose 1% at the end of the trading session on May 22. The rise in oil prices was driven by forecasts of increased oil demand in the second half of the year, while supplies from Canada and OPEC+ have decreased in recent weeks.
Oil prices were held in check, however, by a stronger US dollar and as markets awaited news on US debt ceiling talks.
Brent crude for July delivery rose 41 cents, or 0.5%, to $75.99 a barrel. U.S. West Texas Intermediate (WTI) crude for June delivery rose 44 cents, or 0.6%, to $71.99 a barrel, while the July contract rose 0.5% to $72.05 a barrel.
The biggest price driver, according to Reuters , was U.S. gasoline futures rising 2.8 percent to a one-month high of $2.6489 a gallon.
Analysts at energy consultancy Ritterbusch and Associates said rising gasoline prices were helping oil prices climb ahead of the Memorial Day holiday, which marks the start of the peak summer driving season in the United States.
Meanwhile, in its latest monthly report, the International Energy Agency (IEA) warned of an impending oil shortage in the second half of this year as demand is expected to exceed supply by nearly 2 million barrels per day.
Asia will lead oil demand growth of about 2 million barrels per day in the second half of this year, a rise that is likely to lead to a supply shortage and push prices higher, a senior executive at Vitol said.
Last week, both oil benchmarks rose about 2%, posting their first weekly gain after four straight weeks of declines after wildfires disrupted crude supplies in Alberta, Canada.
Voluntary production cuts by OPEC+ members also took effect this month.
Additionally, oil production in Iraq’s Kurdistan region continued to decline as exports to Türkiye’s Ceyhan port showed little sign of restarting after a nearly two-month shutdown.
JP Morgan said total crude oil and oil product exports from OPEC+ fell by 1.7 million barrels per day on May 16, and Russian oil exports are likely to fall by the end of May.
Last Saturday, at their annual meeting, G7 leaders pledged to step up efforts to combat Russia's evasion of price caps on oil and fuel exports.
Oil prices are low as energy traders are watching what happens with the US debt ceiling negotiations, which are being resumed in an effort to avoid an unprecedented default, said Edward Moya, senior market analyst at data and analytics firm OANDA.
A stronger dollar also limited oil’s gains. Investors are awaiting fresh signals on whether the Federal Reserve is likely to continue raising interest rates. Higher interest rates increase borrowing costs and could slow the economy and reduce oil demand.
Domestic gasoline prices
Domestic retail prices of gasoline on May 23 are as follows:
E5 RON 92 gasoline is not more than 20,488 VND/liter. RON 95 gasoline is not more than 21,499 VND/liter. Diesel oil not more than 17,954 VND/liter. Kerosene not more than 17,969 VND/liter. Fuel oil not exceeding 15,158 VND/kg. |
The above domestic retail price of gasoline and oil was adjusted up by the Ministry of Finance - Industry and Trade in the price management session on the afternoon of May 22 with the highest increase of 499 VND/liter.
In this management period, the joint ministries have set aside the Price Stabilization Fund for E5 RON 92 gasoline at VND 300/liter (as in the previous period), RON 95 gasoline at VND 300/liter (as in the previous period); diesel at VND 300/liter (as in the previous period); kerosene at VND 300/liter (as in the previous period); fuel oil at VND 300/kg (as in the previous period); and have not spent the Price Stabilization Fund for all gasoline and oil products.
With this adjustment, gasoline prices have increased slightly after three consecutive decreases.
Since the beginning of the year, gasoline prices have undergone 14 adjustments, including 8 increases, 5 decreases, and 1 unchanged.
MAI HUONG
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