Oil prices soar on optimism about US avoiding default

Today's oil prices, May 20, analysts say oil prices are showing signs of improvement as investors are optimistic about the US's ability to avoid default.

Giá xăng dầu hôm nay 20/5: Lạc quan về khả năng Mỹ tránh vỡ nợ, giá dầu leo dốc

Oil prices today, May 20, oil prices show signs of improvement as investors are optimistic about the US's ability to avoid default. (Source: Oilprice)

Gasoline price today 5/20

Gasoline prices today (May 20) tend to increase. Yesterday (May 19), world oil prices decreased slightly at the beginning of the session but increased at the end of the session.

According to data from Oilprice , at 10:11 a.m. on May 19 (Vietnam time), Brent crude oil was trading at $76.44/barrel. WTI oil was at $72.38/barrel.

At 7:34 p.m. on May 19 (Vietnam time), Brent crude oil price reached 77.27 USD/barrel, up 1.34 USD, equivalent to 1.77% compared to the previous session. Meanwhile, WTI oil price was at 73.14 USD/barrel, up 1.28 USD, equivalent to 1.78% compared to the previous session.

Analysts say oil prices are showing signs of improvement as investors are optimistic about the US's ability to avoid default.

On May 16, after months of stalling, President Joe Biden and the speaker of the US House of Representatives agreed to direct negotiations, emphasizing their determination to quickly reach an agreement to raise the debt ceiling to avoid a catastrophic default.

In addition, oil prices are also supported by the forecast of continued growth in Chinese demand. China's domestic demand is showing signs of improvement and the country's supply of refined products to other countries is also more limited. This is a factor supporting oil prices.

However, many investors remain concerned as inflation data signals the possibility of more interest rate hikes from central banks around the world.

According to the US Federal Reserve (Fed) policymakers, inflation in the country is still high so the Fed is still likely to raise interest rates next June. This increases concerns about weakening oil demand in the US.

European Central Bank (ECB) Vice President Luis de Guindos recently said that the ECB will have to continue to raise interest rates further to bring inflation back to its medium-term target of 2%.

Also weighing on oil prices is the strengthening of the U.S. dollar, which rose to a two-month high on expectations the Fed could raise interest rates. The rapid rise in the dollar makes oil more expensive for holders of other currencies.

Domestic gasoline prices

From 3:00 p.m. on May 11, the Ministry of Industry and Trade - Ministry of Finance will periodically adjust gasoline prices. Accordingly, E5 RON 92 and RON 95 gasoline will both decrease in price.

During this adjustment period, gasoline prices decreased across the board.

After the adjustment by the Ministry of Industry and Trade - Ministry of Finance, the price of RON 95-III gasoline decreased to 21,000 VND (down 1,320 VND), E5 RON 92 gasoline is 20,130 VND (down 1,300 VND) per liter.

Prices of petroleum products also decreased simultaneously. Specifically, diesel oil is 17,650 VND per liter, down 600 VND. Kerosene has a new price of 117,970 VND, down 550 VND, fuel oil has a new price of 640 VND, at 14,860 VND/kg.

In this adjustment period, the regulatory agency has decided to set aside 300 VND per liter for E5 gasoline, RON 95, DO oil, kerosene, and fuel oil.

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