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| Gasoline prices today, November 12, oil prices this week have continuously reversed in each trading session. (Source: AP) |
In the first trading session of the week, oil prices rose slightly by less than 50 cents after the world's two leading oil exporters Saudi Arabia and Russia reaffirmed their commitment to voluntarily cut oil supply by a total of 1.3 million barrels per day until the end of the year.
Commenting on the commitment, John Kilduff, partner at Again Capital LLC in New York, said Saudi Arabia is playing a leading role in tightening the market and raising prices. UBS strategist Giovanni Staunovo said the cuts could extend into the first quarter of next year due to “weaker seasonal demand at the start of the year,” lingering concerns about economic growth, and “the goal of producers and OPEC+ to support stability and balance in the oil market.”
Oil prices plunged more than 4% to their lowest since late July in the second trading session of the week after the market digested mixed Chinese economic data, rising OPEC exports, and a stronger US dollar.
Concerns about weakening demand in the US and China pushed oil prices down more than 2% to their lowest in more than three months on Tuesday. Oil markets were “less concerned about potential disruptions in the Middle East,” with the focus instead on easing supply-demand balances, according to ING analysts Warren Patterson and Ewa Manthey. Brent crude fell below $80 a barrel.
Concerns about demand and easing war risk premiums helped oil prices turn around and accelerate in the fourth trading session of the week, preventing oil prices from establishing a hat-trick of daily declines.
Oil prices continued their rally into the final trading session of the week, rising about 2% as Iraq voiced support for OPEC+ oil cuts ahead of the group’s meeting on November 26 and as some speculators secured large short positions over the weekend.
Thus, in the 5 trading sessions of the week, oil prices increased 3 sessions and decreased 2 sessions. The modest increase could not help oil prices recover all the big losses in the first 2 trading sessions of the week. With a decrease of about 4%, oil prices extended the decline of last week (6%) and established a hat-trick of weekly declines.
The rise in oil prices in the last two trading sessions of the week will continue if there are no strong fluctuations in the market, especially the conflict in the Middle East next week. Analysts at Commerzbank said: "Concerns about demand have replaced fears of production outages related to the conflict in the Middle East."
In the domestic market, the selling prices of gasoline and oil today are applied according to the prices at the management session on the afternoon of November 1 of the Ministry of Finance - Industry and Trade.
E5 RON 92 gasoline is not more than 22,614 VND/liter. RON 95 gasoline is not more than 23,929 VND/liter. Diesel oil not more than 21,940 VND/liter. Kerosene not more than 22,305 VND/liter. Fuel oil not exceeding 16,240 VND/kg. |
In this management period, the joint ministries decided not to set aside and not to use the Price Stabilization Fund for all petroleum products.
Domestically, the gasoline price adjustment period will be postponed to Monday afternoon (November 13) next week according to the provisions of Decree 95 on gasoline trading. Accordingly, it is forecasted that gasoline prices in this adjustment period will decrease across the board. Updated calculation of finished gasoline prices referenced to the Singapore market until the evening of November 10, some types have decreased by up to VND1,000/liter, excluding the Gasoline Price Stabilization Fund.
Since the beginning of the year, gasoline prices have undergone 31 adjustments, including 19 increases, 9 decreases, and 3 unchanged.
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