Gasoline prices today (June 29): Slight decrease after a spike of about 3%

Oil prices have reversed and fallen slightly after rising nearly $2. WTI crude oil prices have gradually decreased to $69/barrel, while Brent crude oil has stabilized at $74.03/barrel.

World oil prices

At the end of the trading session on June 28, oil prices increased by about 3%. According to Reuters , the sharp reversal of oil prices after a plunge of more than 2 USD in the previous trading session was due to the fact that US crude oil reserves decreased for the second consecutive week, offsetting concerns that interest rate hikes by major central banks in the world could slow economic growth and reduce global oil demand.

Gasoline prices fell slightly at the beginning of trading on June 29. Illustration photo: Foxbusiness

Specifically, Brent crude oil futures increased by 1.77 USD, equivalent to 2.5%, to 74.03 USD/barrel, while US WTI crude oil prices increased by 1.86 USD, equivalent to 2.8%, to 69.56 USD/barrel.

On June 28, the US Energy Information Administration (EIA) said that US crude oil inventories in the week ended June 23 fell by 9.6 million barrels, far exceeding the 1.8 million barrel decline forecast by analysts in a Reuters poll and also much larger than the 2.8 million barrel decline in the same period last year. This decrease also exceeded the five-year average, from 2018 to 2022.

"Overall, these numbers are contrary to what many people think is an oversupplied market. This report could be the bottom (for oil prices)," said Phil Flynn, an analyst at Price Futures Group.

However, investors remain cautious that rising interest rates could slow economic growth and reduce oil demand.

The world's top central bankers have reiterated the need for further policy tightening to curb inflation, Reuters reported. Fed Chairman Powell did not rule out a rate hike at successive Fed meetings, while European Central Bank (ECB) President Christine Lagarde confirmed expectations for a July rate hike, calling the move "likely."

The 12-month forward spread for both Brent and WTI — pricing drivers that indicate higher immediate demand — is at its lowest since December 2022, suggesting “reduced concerns about the potential for supply shortages,” said analysts at energy consultancy Gelber and Associates.

Some analysts expect the market to tighten in the second half of the year, citing ongoing supply cuts by OPEC+ and Saudi Arabia's voluntary production cut of an additional 1 million barrels per day in July.

Oil prices continue to fluctuate. Photo: Oilprice

In China, the world’s second-biggest oil consumer, annual profits at industrial companies extended double-digit declines in the first five months of the year as demand slumped, bolstering hopes for more policy support for the faltering economic recovery from Covid.

Data from the National Bureau of Statistics (NBS) showed that profits fell 18.8% in the first five months of the year compared to the same period last year. In May alone, profits fell 12.6%, narrowing the 18.2% decline in April. The unemployment rate also rose to a new high of 20.8%, according to the NBS.