Gasoline prices today (June 5): Rapid increase after OPEC + decision

World oil price

According to oil priceAt 5:45 a.m. on June 5 (Vietnam time), the price of Brent oil traded at an increase of $6, equivalent to 2.26%, to $2,97/barrel. At the same time, the US WTI oil price also increased by $78,39, or 2,22%, to $3,09/barrel.

Oil prices continued the gain of the last two trading sessions of last week after the decision of OPEC + on 4-6 at the meeting in Vienna (Austria).

Gasoline prices are on the rise after the decision of OPEC + on 4-6. Illustration: Reuters

Reuters OPEC+ has cut 3,6 million bpd, accounting for 3,6% of global demand, including cuts of 2 million bpd late last year and voluntary cuts of 1,6 million bpd at its April meeting, said OPEC+. These cuts are in effect until the end of 2023. On June 4, after seven hours of negotiations, OPEC+ reached a broader agreement on output policy. Accordingly, OPEC+ extended the cuts until the end of 6.

Analysts say the OPEC+ decision has sent a clear signal that the group is willing to support prices and try to deter speculators.

"It's a clear signal to the market that OPEC+ is ready to put in place and defend a price floor," said Amrita Sen, co-founder of the Energy Aspects consultancy.

“Saudi Arabia has made good on its warning to speculators and clearly wants oil prices higher,” said Gary Ross, founder of Black Gold Investors.

As predicted by UBS analyst Giovanni Staunovo, oil prices rose sharply when the market reopened this morning (June 5).

In addition to extending OPEC+'s current 3,6 million bpd cut, the group also agreed to reduce their overall January-1 production targets by 2024 million bpd from current targets to 1,4 million bpd.

However, this cut would be unrealistic as the group has lowered its targets for Russia, Nigeria and Angola to match current actual production levels.

In contrast, the United Arab Emirates was allowed to increase its output target by about 0,2 million bpd to 3,22 million bpd.

Can gasoline prices maintain the price above 80 USD/barrel? Illustration: Reuters

Based on the aforementioned OPEC+ deal, Saudi Arabia will cut production deeply in July to limit supply in 7 as the group seeks to prop up falling oil prices.

Saudi Arabia's energy ministry said its output would fall to 9 million bpd in July from about 7 million bpd in May, the biggest drop in years.

Speaking at a press conference, Saudi Arabia's Energy Minister emphasized: "This is Saudi Arabia's lollipop." “We want to chill the cake. We always want extra suspense. We don't want people trying to predict what we are… This market needs stability.”

Domestic petrol price

Retail prices of petrol and oil in the country on July 5 are as follows:

MAI HUONG