Gasoline prices today (June 5): Drowning in red

After two sessions of price increases at the beginning of the week, world oil prices began to decrease amid concerns about oversupply and declining demand.

At the end of the trading session on June 4, Brent oil price decreased by 0.77 USD/barrel, equivalent to 1.2%, to 64.86 USD/barrel and WTI oil price decreased by 0.56 USD/barrel, equivalent to 0.9%, to 62.85 USD/barrel.

Oil prices began to decline in the third trading session of the week after the US Energy Information Administration (EIA) said that the country's gasoline and diesel inventories unexpectedly increased fuel supplies amid OPEC+ plans to increase production and trade tensions "shadowed" the outlook for global energy demand.

World oil prices have begun to decline after two increases earlier this week. Illustration photo: Reuters

U.S. gasoline inventories rose 5.2 million barrels, compared with analysts' expectations for a 600,000-barrel increase, according to the EIA. Distillate inventories rose 4.2 million barrels, compared with expectations for a 1 million-barrel increase. Crude inventories fell 4.3 million barrels, compared with analysts' expectations for a 1 million-barrel decline.

“This report is negative, due to the sharp increase in refined product inventories,” said Giovanni Staunovo, an analyst at UBS bank.

“Crude oil demand from refineries increased sharply, leading to large crude oil drawdowns. However, after the Memorial Day holiday, the surge in supply and the decline in demand led to a spike in refined product inventories,” Mr. Giovanni Staunovo added.

OPEC+ countries' plan to increase production by 411,000 barrels per day in July is also putting pressure on investors.

Russia reported a 35% drop in oil and gas revenues in May, which could prompt Moscow to oppose further increases in OPEC+ production, as these moves put downward pressure on oil prices, Reuters reported.

The Organization for Economic Cooperation and Development (OECD) has lowered its global growth forecast, as the impact of President Donald Trump's trade policies continues to negatively affect the US economy, thereby affecting oil demand.

The latest report from the US Federal Reserve (Fed) said that US economic activity has weakened and higher tariffs have put pressure on costs and prices of goods since the Fed's last meeting on interest rates.

“Overall, we see limited upside potential for oil prices amid concerns about oversupply and weakening demand,” said Saxo Bank analyst Ole Hansen.

Meanwhile, oil production in Canada that was previously affected by wildfires resumed on June 4. Canadian Natural Resources said it had restarted its Jackfish 1 oil sands mine after determining that the wildfires were safely away from the production area.

According to Reuters estimates, wildfires in Canada have caused the country's oil production to drop by about 344,000 barrels per day.

Domestic gasoline prices

Domestic retail prices of gasoline on June 5, specifically as follows:

E5 RON 92 gasoline is not more than 19,196 VND/liter.

RON 95-III gasoline is not more than 19,565 VND/liter.

Diesel oil not more than 17,136 VND/liter.

Kerosene not more than 17,108 VND/liter.

Fuel oil not exceeding 16,264 VND/kg.

The above domestic retail prices of gasoline and oil will be adjusted by the Ministry of Finance and the Ministry of Industry and Trade in the price management session on the afternoon of June 5. World oil prices began to decrease in the third trading session of the week, affecting domestic gasoline and oil prices.

In the most recent price adjustment, gasoline prices increased and decreased in opposite directions. While the price of E5 RON 92 gasoline increased by 74 VND/liter, RON 95-III gasoline increased by 33 VND/liter, diesel oil price decreased by 269 VND/liter, kerosene decreased by 206 VND/liter and fuel oil decreased by 248 VND/kg.

Source: https://baolangson.vn/gia-xang-dau-hom-nay-5-6-chim-trong-sac-do-5049180.html