Recovering from volatile trading session

Gasoline prices today, November 15, continued to close with a slight increase in a volatile trading session on November 14.

Gasoline prices today, November 15, continued to close with a slight increase in the volatile trading session on November 14. (Source: Reuters)

A sharp drop in US fuel inventories has overshadowed concerns about oversupply amid slowing demand as the US dollar continues to strengthen, Reuters reported.

Brent crude rose 28 cents, or 0.4%, to $72.56 a barrel. West Texas Intermediate (WTI) crude rose 27 cents, or 0.4%, to $68.70 a barrel. Both benchmarks spent most of the session in the red.

The US Energy Information Administration said that in the week ended November 8, US gasoline inventories fell 4.4 million barrels to 206.9 million barrels - the lowest level since November 2022. This decrease in gasoline inventories was in stark contrast to analysts' expectations for an increase of 600,000 barrels. Similarly, distillate inventories, which include diesel and heating oil, fell 1.4 million barrels.

US gasoline prices rose 0.8%, while heating oil prices fell about 0.3% after a brief spike triggered by the data, Reuters reported.

Limiting oil price gains was data showing US oil inventories rose by 2.1 million barrels, 2.8 times the 750,000-barrel increase expected by analysts.

Citing rising output from the US and producers outside the Organization of the Petroleum Exporting Countries and its allies (OPEC+) outpacing slowing demand growth despite continued OPEC+ production cuts, the International Energy Agency (IEA) forecast that global oil supply will exceed demand by 2025.

According to the IEA, in 2024, demand growth will increase by 60,000 barrels per day to 920,000 barrels per day, while oil demand growth in 2025 will remain at 990,000 barrels per day.

Also limiting oil's gains during the session was a surge in the US dollar to a one-year high.

Oil prices are struggling to find equilibrium as the rising dollar index adds to the headwinds, said Dennis Kissler, senior vice president of trading at BOK Financial. In addition, the Trump administration’s control of Congress is likely to reverse much of the Biden administration’s energy policies.

UBS Switzerland AG oil strategist Giovanni Staunovo expects Brent crude to average $80 a barrel in 2025, down $5 from late September levels. The oil market will be balanced or slightly oversupplied next year, the strategist said.

Domestic retail prices of gasoline on November 15 are as follows:

E5 RON 92 gasoline is not more than 19,452 VND/liter.

RON 95-III gasoline is not more than VND 20,607/liter.

Diesel oil not more than 18,573 VND/liter.

Kerosene not more than 18,988 VND/liter.

Fuel oil not exceeding 16,009 VND/kg.

The above domestic retail prices of gasoline and oil were adjusted by the Ministry of Finance - Industry and Trade in the price management session on the afternoon of November 14. Gasoline and oil prices decreased simultaneously, with E5 RON 92 gasoline price decreasing by 292 VND/liter, RON 95-III gasoline decreasing by 247 VND/liter, diesel oil decreasing by 344 VND/liter, kerosene decreasing by 306 VND/liter, and mazut oil decreasing by 385 VND/kg.

During this operating period, the joint ministries did not set aside or use the Petroleum Price Stabilization Fund for E5 RON 92 gasoline, RON 95 gasoline, diesel oil, kerosene, and fuel oil.

Source: https://baoquocte.vn/gasoline-price-today-1511-hoi-phuc-tu-phien-giao-dich-day-bien-dong-293811.html