World oil prices

Reuters reported that oil prices ended the first trading session of the week down nearly 4% after analysts highlighted rising global supplies and concerns about demand growth ahead of key inflation data and a meeting of the US Federal Reserve (Fed) this week.

Oil prices are mixed after both Brent and WTI dropped by a shocking 4%. Photo: Oilprice

Brent crude futures fell $2.95, or 3.9%, to $71.84 a barrel - the lowest since December 2021. US West Texas Intermediate (WTI) crude futures fell $3.05, or 4.4%, to $67.12 a barrel.

According to Oilprice , both Brent and WTI crude oil slid after the market received information on June 11 that Goldman Sachs had lowered its oil price forecast due to higher-than-expected supply later this year and in 2024. The bank forecasts Brent crude oil price in December to fall to $86/barrel from $95/barrel previously and WTI oil price to $81/barrel from $89/barrel.

Goldman Sachs's lowered oil price forecast appears to be a catalyst for oil selling, said Kpler analyst Matt Smith.

In another development, UBS analyst Robert Yawger said that while the US Federal Reserve (Fed) is expected to keep interest rates unchanged this month, investors are concerned that rate hikes may continue next month.

“The Fed meeting and inflation pressures remain the main issues for markets this week,” said Rob Haworth, senior investment strategist at US Bank Asset Management.

Haworth said the Fed is likely to keep rates unchanged, so investors will have to closely watch Fed Chairman Powell's press conference for clues on the expected path of interest rates.

Also weighing on investors' minds is the slow recovery in oil demand in China - the world's top importer of crude and refined products.

“China’s demand is showing no signs of materializing,” said Robert Yawger, adding that a 2 million bpd demand forecast for the East Asian country is a significant number. “There are certainly concerns that OPEC and the International Energy Agency (IEA) will cut their demand forecasts.”

Today (June 13), OPEC and IEA will release monthly market updates.

Last week, both Brent and WTI crude posted their second consecutive weekly declines after disappointing Chinese economic data erased the bullish momentum from Saudi Arabia’s commitment to cut production in July.

Gasoline prices continue to fluctuate strongly due to related news. Illustration photo: Reuters

Domestic gasoline prices

Domestic retail prices of gasoline on June 13 are as follows:

E5 RON 92 gasoline is not more than 20,878 VND/liter.

RON 95 gasoline is not more than 22,015 VND/liter.

Diesel oil not more than 18,028 VND/liter.

Kerosene not more than 17,823 VND/liter.

Fuel oil not exceeding 14,719 VND/kg.

The above domestic gasoline prices were adjusted at the joint price management session of the Ministry of Finance - Industry and Trade on the afternoon of June 12, with gasoline prices remaining unchanged, oil prices increased slightly by less than 100 VND/liter, and only fuel oil prices decreased by 164 VND/kg.

In this operating period, the joint ministries set aside the Price Stabilization Fund (BOG) for E5 RON 92 gasoline at VND228/liter (previous period VND300/liter), RON 95 gasoline at VND180/liter (previous period VND300/liter); diesel at VND200/liter (previous period VND300/liter); kerosene at VND200/liter (previous period VND300/liter); and fuel oil at VND100/kg (previous period VND300/kg); at the same time, the BOG Fund was not spent on all gasoline and oil products.

Since the beginning of the year, gasoline prices have undergone 17 adjustments, of which 9 have increased, 6 have decreased, and 2 have remained unchanged.

MAI HUONG