World oil prices

At the end of the trading session on June 15, oil prices unexpectedly increased sharply by about 3% to a one-week high. This sudden acceleration in oil prices was due to the decline of the US dollar and the surge in oil refining activities in China.

Brent crude rose $2.47, or 3.4 percent, to $75.67 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.35, or 3.4 percent, to $70.62 a barrel. This was the highest closing level for Brent and WTI since June 8.

Gasoline prices suddenly accelerated. Illustration photo: Oilprice

Oil markets were supported by U.S. reports showing that retail sales in the country unexpectedly rose 0.3% in May, contrary to economists' forecasts for a 0.1% decline. In addition, the number of jobless claims last week remained at 262,000, higher than forecast. These figures pushed the dollar to a five-week low.

Also on June 15, data from China showed that the East Asian country's oil refining output in May increased 15.4% compared to the same period last year.

China's oil demand is expected to continue to grow at a steady pace in the second half of this year, according to the CEO of Kuwait Petroleum Corp.

Explaining the sudden rise in oil prices, Phil Flynn, an analyst at Price Futures Group, said it was due to data related to Chinese refineries and the depreciation of the US dollar after the US Federal Reserve (Fed) paused raising interest rates while interest rates continued to rise in Europe.

As expected, on June 15, the European Central Bank (ECB) raised interest rates by 25 basis points to 3.5% - the highest level in 22 years. This is the 8th interest rate increase by the ECB since July 2022 to respond to persistent high inflation.

“The outlook for economic growth and inflation remains highly uncertain,” ECB President Christine Lagarde said. With her comments, the bank is likely to maintain its rate hike momentum. Before the ECB’s June 15 decision, markets had priced in another 25 basis point rate hike by the ECB in July or September.

Previously, on June 14, the Fed kept interest rates unchanged but signaled an increase of at least half a percentage point by the end of the year.

Higher interest rates would increase borrowing costs for consumers, which could slow economic growth and reduce demand for oil.

Gasoline prices are expected to increase due to reduced supply. Illustration photo: Reuters

On the supply side, analysts expect voluntary crude oil production cuts implemented from May by OPEC+ and by Saudi Arabia in July to support prices at a time of strong demand.

UBS expects a supply deficit of about 1.5 million barrels per day in June and more than 2 million barrels per day in July. The bank predicts that oil prices will trend higher.

Domestic gasoline prices

Domestic retail prices of gasoline on June 16 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.

MAI HUONG