World oil prices are expected to fall slightly this week. Domestically, gasoline prices are expected to continue to fall.
World oil prices
Last week, the world oil market ended the trading week with mixed trends, as the market reacted to the news that OPEC+ would increase oil production in August, Iran announced the suspension of cooperation with the International Atomic Energy Agency (IAEA), and the trade agreement between Vietnam and the US. Overall, Brent crude oil prices increased by about 0.8%, while WTI crude oil increased by 1.5% compared to the end of last week, marking the second consecutive week of increase amid investors' expectations of demand recovery.
According to Oilprice, at 5:30 a.m. on July 7 (Vietnam time), Brent oil price decreased by 0.69 USD/barrel (down 1.01%), to 67.61 USD/barrel and WTI oil price decreased by 0.68 USD/barrel (down 1.02%), to 65.82 USD/barrel.
One of the main factors putting pressure on oil prices today is OPEC+'s policy of increasing production, in a context where the market has not shown signs of strong recovery in consumption demand.
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| OPEC+'s decision to increase production by 548,000 barrels per day in August could cause oil prices to fall this week. Illustration photo: Bizz Buzz |
According to an update from Reuters, OPEC+ agreed to continue increasing oil production in August by 548,000 barrels/day, after the organization's meeting on July 5 to regain market share in the context of increasing supply from rival producers such as the US.
“The decision to increase production by 548,000 barrels per day in August, marking the fourth consecutive month of OPEC+ production increases, could tip the global oil supply-demand balance in the second half of the year towards oversupply, leading to a faster-than-expected build-up in global oil inventories.”
“These factors will cause oil prices to fall in the coming weeks,” said Tamas Varga, senior analyst at consultancy PVM.
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| Illustration: Getty |
Additionally, the US gasoline inventory report as well as estimates of gasoline demand during the peak season also affected prices - negatively as the inventory report showed an unexpected increase in shipments while gasoline demand was lower than expected.
Based on current data, analysts say oil prices are likely to decline slightly next week amid rising supply and a lack of strong demand recovery. A sharp increase scenario will only occur if major events such as prolonged supply disruptions or breakthroughs in international trade negotiations occur. On the contrary, if US oil inventories continue to rise and OPEC+ adjusts to increase production, oil prices may decline in the coming weeks.
Domestic gasoline prices
Domestic retail prices of gasoline on July 7, specifically as follows:
| - E5RON92 gasoline: No higher than 19,445 VND/liter. - RON95-III gasoline: No higher than VND 19,906/liter. - Diesel 0.05S: Not higher than 18,408 VND/liter. - Kerosene: Not higher than 18,132 VND/liter. - Mazut oil 180CST 3.5S: Not higher than 15,807 VND/kg. |
The Ministry of Industry and Trade and the Ministry of Finance have just decided on retail gasoline prices from 3:00 p.m. on July 3. Accordingly, the price of E5RON92 gasoline decreased by VND1,085/liter, RON95-III gasoline decreased by VND1,210/liter; diesel oil price decreased by VND941/liter; kerosene decreased by VND932/liter; and fuel oil decreased by VND1,148/kg.
In this operating period, the Ministry of Industry and Trade - Ministry of Finance did not set aside or use the Petroleum Price Stabilization Fund for E5RON92 gasoline, RON95 gasoline, diesel oil, kerosene, and fuel oil.
According to the joint ministries, the world oil market in this management period is affected by major factors such as: OPEC+ plans to increase oil production in August; Iran announces suspension of cooperation with the International Atomic Energy Agency (IAEA); US crude oil reserves increase... The above factors have caused world oil prices to fluctuate up and down depending on each product in recent days.
HOANG TRUONG
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Source: https://baolamdong.vn/gia-xang-dau-hom-nay-7-7-xu-huong-giam-gia-381411.html
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