World increase, domestic forecast to increase?

World oil prices

At the beginning of the first trading session of the week, gasoline prices increased slightly, reversing the decline of the last two trading sessions of the previous week. Brent oil prices gradually increased to the mark of 76 USD/barrel, WTI oil prices slightly advanced to the mark of 72 USD/barrel.

Last week, despite the strong fluctuations in oil prices in each trading session, falling three sessions and rising two sessions, oil prices experienced their first weekly increase after a series of four weeks of "unstoppable declines". According to Reuters , oil prices increased by about 2% last week, strongly affected by negotiations on raising the US debt ceiling of 31.4 trillion USD between the White House and the Republican Party.

Oil prices rose on signs of a deal being reached between the White House and Republicans, but turned lower as the week progressed as talks stalled ahead of a June 1 deadline when the US Treasury Department warned the country could default on its debt for the first time in history.

In addition to the US debt ceiling, oil prices last week were also affected by the prospect of tightening supplies in Canada and elsewhere. Wildfires in Alberta, Canada, have disrupted at least 300,000 barrels of oil production per day in that country. May was also the month when many OPEC+ members began voluntary production cuts.

The cuts could have a bigger impact as we move into the summer, as previous efforts to balance the market have been offset by seasonal weakness and releases from strategic oil reserves, said Peter McNally, an analyst at Third Bridge.

The impasse over raising the U.S. debt ceiling is exacerbating the challenges facing energy markets. If the U.S. government fails to raise its borrowing limit in time, the Treasury could run out of cash to make payments, setting the stage for a default. This scenario would have catastrophic consequences for the economy and financial system.

Dailyfx said that there is a possibility that a deal will be reached at the last minute. However, such a deal could only come after the market begins to experience significant turmoil.

In the current environment, according to Dailyfx , oil prices may be tilted to the downside, so further losses cannot be ruled out. Therefore, traders should be vigilant and keep a close eye on the news, paying special attention to the debt ceiling story.

Domestic gasoline prices

Domestic retail prices of gasoline on May 22 are as follows:

E5 RON 92 gasoline is not more than 20,131 VND/liter.

RON 95 gasoline is not more than 21,000 VND/liter.

Diesel oil not more than 17,653 VND/liter.

Kerosene not more than 17,972 VND/liter.

Fuel oil not exceeding 14,862 VND/kg.

The above domestic gasoline prices will be adjusted at the price management session of the Ministry of Finance - Industry and Trade this afternoon.

Last week, gasoline prices accelerated after four weeks of “unstoppable decline”. It is expected that gasoline prices will be adjusted up slightly by about 300-500 VND/liter (kg).

In the most recent adjustment, gasoline prices fell for the third consecutive time.

Since the beginning of the year, gasoline prices have undergone 13 adjustments, including 7 increases, 5 decreases, and 1 unchanged.

MAI HUONG

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