Today's fuel prices (May 23): Will the upward trend continue?

World oil prices

Reuters reported that oil prices rose 1% at the close of trading on May 22. The surge in oil prices was driven by forecasts of increased oil demand in the second half of the year, while supply from Canada and OPEC+ has decreased in recent weeks.

However, oil prices were kept in check by the stronger US dollar and as the market awaited news on US debt ceiling negotiations.

Brent crude futures for July delivery rose 41 cents, or 0.5%, to $75.99 per barrel. US WTI crude futures for June delivery rose 44 cents, or 0.6%, to $71.99 per barrel, while the July contract gained 0.5% to $72.05 per barrel.

The biggest driver of prices, according to Reuters , was the 2.8% rise in US gasoline futures to a one-month high of $2.6489 per gallon.

Analysts at energy consulting firm Ritterbusch and Associates noted that rising gasoline prices have supported the climb in oil prices as Memorial Day approaches. This holiday marks the beginning of the peak summer driving season in the U.S.

Meanwhile, in its latest monthly report, the International Energy Agency (IEA) warned of an impending oil shortage in the second half of this year, with demand expected to exceed supply by nearly 2 million barrels per day.

A senior executive at Vitol said Asia will lead oil demand growth of around 2 million barrels per day in the second half of this year, an increase that could lead to supply shortages and push prices higher.

Last week, both benchmark oil prices rose by about 2%, experiencing their first weekly gain after four consecutive weeks of declines following wildfires that disrupted crude oil supplies in Alberta, Canada.

Voluntary production cuts by OPEC+ members also began to take effect this month.

In addition, oil production in Iraq's Kurdish region continues to decline as export flows to Türkiye's Ceyhan port show little sign of restarting after a nearly two-month shutdown.

JP Morgan reported that total exports of crude oil and petroleum products from OPEC+ fell by 1.7 million barrels per day on May 16, and that Russian oil exports are likely to decline 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.

According to Edward Moya, senior market analyst at data and analytics firm OANDA, oil prices are low as energy traders watch what happens in negotiations over the US debt ceiling. These talks are resuming in an effort to avert an unprecedented default.

The strengthening US dollar also limited the upward momentum of oil prices. Investors are awaiting further signals on whether the Federal Reserve is likely to continue raising interest rates. Higher interest rates would increase borrowing costs and could slow the economy and reduce oil demand.

Domestic fuel prices

The retail prices of gasoline and diesel in Vietnam on May 23rd are as follows:

E5 RON 92 gasoline should not exceed 20,488 VND/liter.

RON 95 gasoline should not exceed 21,499 VND/liter.

Diesel fuel prices should not exceed 17,954 VND/liter.

Kerosene should not exceed 17,969 VND/liter.

Fuel oil price should not exceed 15,158 VND/kg.

The aforementioned domestic retail gasoline and diesel prices were adjusted upwards by the Ministry of Finance and the Ministry of Industry and Trade at the price adjustment meeting on the afternoon of May 22nd, with the highest increase being 499 VND/liter.

In this price adjustment period, the inter-ministerial committee allocated funds to the Price Stabilization Fund for E5 RON 92 gasoline at 300 VND/liter (the same as the previous period), RON 95 gasoline at 300 VND/liter (the same as the previous period); diesel fuel at 300 VND/liter (the same as the previous period); kerosene at 300 VND/liter (the same as the previous period); and fuel oil at 300 VND/kg (the same as the previous period); and did not disburse funds from the Price Stabilization Fund for any gasoline or oil products.

With this adjustment, gasoline prices have risen slightly after three consecutive decreases.

Since the beginning of the year, gasoline prices have undergone 14 adjustments, including 8 increases, 5 decreases, and 1 time remaining unchanged.

MAI HUONG

Source: https://www.qdnd.vn/kinh-te/tin-tuc/gia-xang-dau-hom-nay-23-5-tiep-da-tang-728977