World oil prices

US President Joe Biden and House Speaker Kevin McCarthy reached an agreement in principle late on May 27 (local time) to raise the national debt ceiling. The agreement, reached after a phone call lasting more than an hour, will be an important step to prevent a debt default that could destabilize the US economy .

Are oil prices starting their third consecutive week of increases? Photo illustration: Oilprice

However, for the agreement to take effect, it needs to be approved by both the US House of Representatives and the US Senate before June 5 – the day that US Treasury Secretary Janet Yellen warned that the Treasury Department would no longer have the resources to meet the Government's obligations if Congress did not raise the public debt ceiling.

The agreement in principle reached after days of tense negotiations has had a strong impact on the market, supporting oil prices to extend their upward momentum into the early trading session this week.

At 5:55 a.m. on May 29 (Vietnam time), Brent oil price increased to 77.48 USD/barrel, WTI oil price also increased to 73.21 USD/barrel.

Last week, oil prices rose and fell amid talks to raise the $31.4 trillion debt ceiling, mixed messages about supply from OPEC+ ahead of a June 4 policy meeting, and a shocking drop in U.S. petroleum reserves.

In the five trading sessions of the week, oil prices rose four times and fell one. In the session that fell, oil prices plunged more than 3% after Russian Deputy Prime Minister Alexander Novak commented that OPEC+ would not take any new steps at the upcoming meeting, lowering the prospect of further OPEC+ production cuts.

Earlier, oil prices rose as Saudi Arabia's Energy Minister Prince Abdulaziz warned short sellers betting on prices falling to "watch out" for losses.

In addition to news surrounding the US debt ceiling negotiations, oil prices climbed last week after the International Energy Agency (IEA) warned of an impending oil shortage in the second half of this year. The IEA expects demand to exceed supply by nearly 2 million barrels per day.

In addition, just before Memorial Day in the US - marking the start of the peak summer tourist season in the land of the stars and stripes, the US Energy Information Administration (EIA) released a report showing that US oil reserves had dropped by a shocking 12.5 million barrels to 455.2 million barrels; US gasoline and distillate reserves also fell sharply.

Last week, Brent rose 1.7% and WTI rose 1.6%. Both benchmarks marked their second consecutive weekly gain after a hat-trick of losses.

Gasoline prices continue to fluctuate in each trading session. Illustration photo: Reuters

The US debt ceiling negotiations have ended, but the fate of the agreement in principle between US President Joe Biden and House Speaker Kevin McCarthy will be the focus of the market this week and next as the 5-6 day deadline draws closer.

Additionally, any comments regarding OPEC+'s production policy maintenance or change at the upcoming meeting will also impact oil prices.

Another volatile week for oil has begun. Will oil prices make a hat-trick of gains this week? We will find out at the end of Friday's trading session.

Domestic gasoline prices

Domestic retail prices of gasoline on May 29 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.

MAI HUONG