World oil prices "turn around" and bounce back

Gasoline price today , world oil price June 21 , 2024

Recorded on Oilprice at 4:30 a.m. on June 21, 2024 (Vietnam time), WTI oil price was at 82.34 USD/barrel, up 0.74% (equivalent to an increase of 0.6 USD/barrel).

WTI oil price on the world market early morning June 21 (Vietnam time)

Similarly, Brent oil price was at 85.71 USD/barrel, up 0.75% (equivalent to an increase of 0.64 USD/barrel).

Brent oil price on the world market early morning June 21 (Vietnam time)

Oil futures rose after the US Energy Information Administration (EIA) reported a drop in crude prices and data showing a cooling job market raised hopes the US Federal Reserve (FED) could soon cut interest rates.

“The market is definitely recovering,” said Phil Flynn, an analyst at Price Futures Group.

The EIA said crude inventories fell by 2.5 million barrels in the week ended June 14 to 457.1 million barrels, compared with analysts' expectations in a Reuters poll for a 2.2 million-barrel drop.

Inventories at Cushing, Oklahoma, the U.S. crude futures delivery hub, rose 307,000 barrels, the EIA said.

There was no WTI settlement on Wednesday due to a U.S. holiday, keeping trading largely quiet. The more active August contract was up 60 cents at $81.31.

In addition, the number of Americans filing new claims for unemployment benefits fell last week, weakening the labor market along with the broader economy as the Fed tightens policy to fight inflation. As that pressure eases, a rate cut this year remains on the table.

Lower interest rates could support oil prices, which have been hammered this year by sluggish global demand. A U.S. rate cut would make borrowing cheaper in the world’s largest economy, boosting demand for oil as production increases.

Oil prices could also remain supported by rising geopolitical risk premiums due to conflict in the Middle East, said ActivTrades analyst Ricardo Evangelista.

Israeli forces attacked areas in the central Gaza Strip overnight, while tanks advanced into Rafah in the south.

However, expectations of rising inventories appear to overshadow concerns about escalating geopolitical tensions, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Rising summer oil demand, refinery activity and ongoing weather risks combined with extended OPEC+ production cuts mean “oil balances will tighten and inventories will start to decline in the summer months,” JPMorgan commodities analysts wrote.

The Bank of England kept its base rate at a 16-year high of 5.25% ahead of the UK national election on July 4.

Domestic gasoline prices today June 21, 2024

Domestic retail gasoline prices on June 21, 2024 will be applied according to the adjustment session from 3:00 p.m. on June 20 by the Ministry of Finance - Ministry of Industry and Trade.

Domestic gasoline prices will be adjusted from 3:00 p.m. on June 20. Illustrative photo

Specifically, the price of E5 RON 92 gasoline increased to 21,508 VND/liter; RON 95 gasoline increased to 22,466 VND/liter.

In this adjustment session, oil prices increased again. Specifically, diesel oil price increased to 20,360 VND/liter; kerosene increased to 20,356 VND/liter. Fuel oil in this session was also adjusted up 334 VND/kg to 17,223 VND/kg.

Item	Price (VND/liter/kg)	Difference from previous period
E5 RON 92 gasoline	21,508	+198
RON 95 gasoline	22,466	+231
Diesel	20,360	+720
Oil	20,356	+497
Fuel oil	17,223	+334

According to the explanation of the Ministry of Industry and Trade, the above changes in domestic gasoline prices are due to the influence of factors such as: tensions in the Middle East region showing signs of increasing, military conflicts between Russia and Ukraine continuing, Ukraine continuing to attack Russian oil storage facilities... The above factors have caused world gasoline prices to tend to increase in recent days.

Regarding the Petroleum Price Stabilization Fund (BOG) in this management period, the Ministry of Industry and Trade - Ministry of Finance decided: Not to set aside or use the Petroleum Price Stabilization Fund for E5RON92 gasoline, RON95 gasoline, diesel oil, kerosene, and fuel oil.

Thus, since the beginning of the year, the regulatory agency has made 25 adjustments to gasoline prices, including 10 periods of simultaneous price increases, 7 periods of price decreases, and 8 periods of alternating increases and decreases in gasoline prices.

Source: https://congthuong.vn/gia-xang-dau-hom-nay-ngay-2162024-gia-dau-the-gioi-quay-xe-bat-tang-tro-lai-327282.html