"Catching the wave" from the US, prices recover; domestic gasoline exceeds 22,000 VND/liter

Gasoline prices today, June 2, have recovered amid market optimism about the US debt ceiling agreement.

Giá xăng dầu hôm nay 2/6: xăng trong nước vượt 22.000 đồng/lít

Gasoline prices today, June 2: 'Catching the wave' from the US, prices recover, domestic gasoline exceeds 22,000 VND/liter. (Source: Reuters)

Crude oil futures prices recovered in the trading session on June 1 amid market optimism about the US debt ceiling agreement.

The price of US light sweet crude (WTI) for July 2023 delivery increased by 2.01 USD (2.95%) to 70.10 USD/barrel on the New York Mercantile Exchange. The price of Brent crude for August 2023 delivery also increased by 1.68 USD (2.31%) to 74.28 USD/barrel on the ICE London exchange.

On May 31, the US House of Representatives passed a debt ceiling bill with the contents previously agreed upon by President Joe Biden and House Speaker Kevin McCarthy after weeks of negotiations. The bill passed with 314 votes in favor and 117 against. The bill will be sent to the Senate for discussion and a vote, possibly by the end of next week.

Optimism about the debt ceiling appears to be keeping the oil market afloat, said Phil Flynn, senior analyst at The PRICE Futures Group. Hopes that the U.S. will avoid default have helped the market ignore the surge in U.S. crude supplies.

US commercial crude oil inventories rose by 4.5 million barrels in the week ended May 26, contrary to market expectations for a decline, according to data released by the US Energy Information Administration on Thursday (June 1).

Market focus also shifted to the June 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, collectively known as OPEC+.

“The OPEC+ meeting this weekend could lead to a bit of caution around (low) levels, especially given the ‘caution’ warning from the Saudi energy minister,” said OANDA analyst Craig Erlam.

Reuters cited OPEC+ sources as saying the alliance was unlikely to deepen supply cuts at its meeting on Sunday, but some analysts said that was still likely given disappointing demand indicators from China and the United States in recent weeks.

US crude oil inventories unexpectedly rose last week as imports surged and strategic reserves fell to their lowest level since September 1983, according to data from the US Energy Information Administration (EIA).

According to the Ministry of Industry and Trade - Ministry of Finance, the petrol price adjustment period on June 1st recorded mixed increases and decreases in petrol prices. While the selling prices of petrol products continued to increase as in the previous period, the selling prices of oil products decreased slightly.

The world oil market in this operating period (May 22 - June 1) is affected by many factors such as: OPEC+'s production cut; concerns about the US debt ceiling; stagnant industrial activities and higher interest rates increasing the risk of economic recession... These factors affect the price of oil and gas to fluctuate.

Also in this operating period, the Ministry of Industry and Trade - Ministry of Finance decided to keep the same level of deduction for the Petroleum Price Stabilization Fund for all petroleum products as the previous period and continue not to spend the fund for all petroleum products.

Gasoline/oil	Change	Price is not higher
RON95-III gasoline	+ 516 VND/liter	22,015 VND/liter
E5RON92 gasoline	+ 390 VND/liter	20,878 VND/liter
Diesel oil 0.05S	- 11 VND/liter	17,943 VND/liter
Oil	- 198 VND/liter	17,771 VND/liter
Mazut oil 180CST 3.5S	- 275 VND/kg	14,883 VND/kg

This price takes effect from 3:00 p.m. on June 1. Since the beginning of 2023, gasoline prices have been adjusted 16 times, including 9 increases, 6 decreases, and one unchanged.

Source