Gasoline prices are expected to decrease by up to 900 VND/liter?

Domestic gasoline prices decrease following world trends

According to tradition, November 11 is the date for domestic gasoline price adjustment, but because it falls on the weekend, it will be postponed to November 13, the first working day of the new week.

Informing VTC News, Mr. Phan Van Chinh - Director of the Domestic Market Department ( Ministry of Industry and Trade ) said that the Ministry of Industry and Trade - Finance will adjust the retail price of gasoline on Monday, November 13, instead of November 11 as usual.

"This is consistent with the provisions of Decree 95/2021/ND-CP on petroleum trading," said Mr. Chinh.

Many businesses predict that gasoline prices will decrease by 400 - 900 VND/liter/kg in the adjustment period tomorrow, November 13.

Forecasting domestic retail gasoline prices in the next adjustment period, many opinions say that prices of products may decrease simultaneously.

It is forecasted that the decrease in gasoline prices could be from 300 - 400 VND, while the decrease in oil prices ranges from 400 - 700 VND/liter, kg.

Meanwhile, Mr. Giang Chan Tay, Director of Boi Ngoc Company Limited (Tra Vinh) commented that due to the sharp decline in world oil prices last week, in the management session tomorrow (November 13), the Ministry of Finance - Ministry of Industry and Trade will adjust retail gasoline prices in a downward trend.

“If the latest price is applied, gasoline may decrease by 400 VND/liter, to 22,235 VND/liter (E5 RON 92) and 23,529 VND/liter (RON 95). Meanwhile, retail oil prices are forecast to decrease more sharply, especially diesel prices which may decrease by 4.1%, equivalent to 903 VND to 21,037 VND/liter. Kerosene may decrease by 634 VND to 21,666 VND/liter, and fuel oil may decrease by 417 VND to 15,823 VND/liter. If the joint ministries set aside a price stabilization fund, gasoline prices may decrease more slightly,” said Mr. Giang Chan Tay.

In the domestic market, the selling prices of gasoline and oil today are being applied according to the prices at the management session on the afternoon of November 1 of the Ministry of Finance - Industry and Trade.

Specifically, the price of E5 RON92 gasoline increased by 249 VND/liter, to 22,614 VND/liter, the price of RON95 gasoline increased by 416 VND/liter, to 23,929 VND/liter.

Diesel price decreased by 549 VND/liter, not higher than 21,940 VND/liter; kerosene decreased by 448 VND/liter, not higher than 22,305 VND/liter and fuel oil decreased by 373 VND/kg, not higher than 16,240 VND/kg.

Since the beginning of the year, gasoline prices have undergone 31 adjustments, including 18 increases, 9 decreases, and 4 unchanged.

World oil prices increased slightly at the end of the week

World oil prices early this morning, November 12, updated on Oilprice continued to fluctuate.

Specifically, the closing price of WTI oil at the end of the trading session of the week, at 7:00 a.m. on November 12, was 77.35 USD/barrel, up 1.89% (equivalent to an increase of 1.43 USD). The price of Brent oil was 81.65 USD/barrel, up 2.05% (equivalent to an increase of 1.64 USD).

Since the beginning of the week, oil prices have fluctuated a lot, especially declining severely. Therefore, both WTI and Brent crude oil are below the $80/barrel mark. However, in the last trading session of the week, oil prices grew well, returning to the green track.

World oil prices increased slightly at the end of the week, but fell sharply during the week. (Illustration photo).

The reasons stem from concerns about weakening demand in the world's top consuming countries including the United States and China, from China's mixed economic data, and increased OPEC exports, easing concerns about a tightening market.

Oil prices rose about 2% on Friday as Iraq voiced support for OPEC+ oil cuts ahead of a meeting in two weeks and some speculators secured large short positions ahead of oil price uncertainty over the weekend, Reuters reported.

Given this situation, Mr. Phil Flynn, analyst at Price Futures Group, said that there will be some short selling orders at the end of the week.

“This is the perfect technical storm. We came into the week near record short positions and now we’re seeing some short positions coming into the weekend,” said Phil Flynn.

Additionally, weak economic data from China this week added to concerns about weakening demand. Refineries in China, the biggest buyer of crude from Saudi Arabia (the world’s largest exporter), ordered less supply in December.

In addition, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will hold a meeting on November 26. On the Iraqi side, the capital of this country said that it is committed to complying with the OPEC+ agreement on determining production levels.

Meanwhile, RBC Capital Markets analyst Helima Croft said Saudi Arabia will continue to cut production into the first quarter of 2024 due to “concerns about Chinese demand and the broader macro outlook.”

At the same time, OPEC+ could cut supply further if prices continue to fall, according to analysts at Capital Economics.

PHAM DUY

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