At the end of the trading session on September 26, oil prices "fell" nearly 3% after news from the Financial Times showed that Saudi Arabia, the world's leading crude oil exporter, would abandon its target price of $100 to prepare to increase production with members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in December. Domestically, gasoline prices increased by more than VND700/liter.
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| At the end of the trading session on September 26, oil prices "fell" nearly 3% after news that Saudi Arabia, the world's leading crude oil exporter, would abandon its target price of $100. (Source: Oilprice) |
Brent crude fell $1.86, or 2.53 percent, to $71.60 a barrel. WTI crude fell $2.02, or 2.9 percent, to $67.67 a barrel.
The Financial Times reported on September 26 that Saudi Arabia is preparing to abandon its unofficial crude oil price target of $100 a barrel as it prepares to increase production. Meanwhile, Reuters cited OPEC+ sources as saying that the producer group will continue to increase oil production in December.
Commenting on the sudden drop in oil prices, Phil Flynn, senior analyst at Price Futures Group, said the market was overreacting to the news from the Financial Times .
Tamas Varga, an analyst at PVM, said the news was about the planned lifting of production cuts, which if implemented would add 180,000 barrels per day to crude supplies each month.
According to Varga, the global oil balance will loosen and OPEC’s spare production capacity will decrease. That could lead to stockpiling in 2025 and keep prices moderate. But if it is a harbinger of a supply war between OPEC and non-OPEC, a sharp drop to $40 a barrel cannot be ruled out.
OPEC+ has cut oil production to support prices. However, prices have fallen nearly 6% this year due to increased supply from other producers, especially the United States, and weak demand growth in China.
The prospect of additional supply from Libya and Saudi Arabia is the main driver behind this price decline, said Ole Hansen, analyst at Saxo Bank.
Limiting oil’s decline during the session was news of a new economic stimulus package from China. Senior government officials in China, the world’s largest crude importer, pledged on September 26 to deploy “necessary fiscal spending” to meet this year’s economic growth target of around 5%.
Domestic retail prices of gasoline on September 27 are as follows:
E5 RON 92 gasoline is not more than 19,620 VND/liter. RON 95-III gasoline is not more than 20,518 VND/liter. Diesel oil not more than 17,506 VND/liter. Kerosene not more than 17,873 VND/liter. Fuel oil not exceeding 15,357 VND/kg. |
The above domestic retail prices of gasoline and oil were adjusted up by the Ministry of Finance - Ministry of Industry and Trade in the price adjustment session on the afternoon of September 26. The price of E5 RON 92 gasoline increased by 679 VND/liter, RON 95-III gasoline increased by 756 VND/liter, diesel oil increased by 463 VND/liter, kerosene increased by 322 VND/liter, and fuel oil increased by 531 VND/kg. This is the second consecutive increase in gasoline prices.
In this operating period, the joint ministries did not set aside or use the Petroleum Price Stabilization Fund for E5 RON 92 gasoline, RON 95 gasoline, diesel oil, kerosene, and fuel oil.
Source: https://baoquocte.vn/gia-xang-dau-hom-nay-279-do-deo-gan-3-trong-nuoc-xang-ron-95-tang-hon-700-donglit-287842.html
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