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| Oil prices today, October 6. At the end of the trading session on October 5, oil prices fell by about 2%, extending the nearly 6% decrease of the previous session. (Source: Reuters) |
Oil prices' plunge was supported by concerns about fuel demand that outweighed OPEC+'s decision to maintain oil production cuts, keeping supplies tight.
Brent crude futures fell $1.74, or 2.03%, to $84.07 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell $1.91, or 2.3%, to $82.31 a barrel.
Global benchmark Brent crude and U.S. West Texas Intermediate (WTI) crude futures have fallen about $10 a barrel in less than 10 days after soaring to near $100 a barrel in late September.
Over the past two days, both oil benchmarks posted their biggest combined percentage declines since May.
On October 4, oil prices closed down more than $5 - the biggest daily drop in more than a year despite OPEC+'s decision to keep its oil production policy unchanged and Saudi Arabia and Russia maintaining a voluntary cut of 1.3 million barrels of oil per day until the end of the year.
“This is typical speculative trading,” said Bob Yawger, director of energy futures at Mizuho, with market participants trying to “buy the bottom.”
Andy Lipow, president of Lipow Oil Associates LLC, said long positions built in anticipation of $100 a barrel are being liquidated.
Oil prices extended losses after data from the U.S. Energy Information Administration (EIA) on October 5 showed a sharp decline in U.S. gasoline demand. Deliveries of finished motor gasoline, a proxy for demand, fell last week to their lowest level since early this year. Gasoline inventories rose significantly, by 6.5 million barrels, in the week ended September 29, according to the EIA. Gasoline inventories are now 1% above the five-year average for this time of year.
“I don’t see gasoline demand going above 8.5 million barrels a day until the holiday shopping season starts and that will be a problem for the market,” said John Kilduff, partner at Again Capital LLC in New York.
U.S. heating oil futures fell more than 5% on expectations that a Russian fuel export ban imposed last month will soon be lifted and that supply disruptions will be less severe than the market had expected.
In the domestic market, the selling prices of gasoline and oil today are applied according to the prices at the management session on the afternoon of October 2nd of the Ministry of Finance - Ministry of Industry and Trade. Accordingly, gasoline and oil prices are adjusted to increase sharply.
E5 RON 92 gasoline is not more than 23,502 VND/liter. RON 95 gasoline is not more than 24,842 VND/liter. Diesel oil not more than 23,594 VND/liter. Kerosene not more than 23,816 VND/liter. Fuel oil not exceeding 17,452 VND/kg. |
During this management period, the joint ministries did not set aside or stop using the Price Stabilization Fund for the two gasoline products; reduced the expenditure level of the Price Stabilization Fund for diesel and kerosene products, and did not spend the Price Stabilization Fund for fuel oil products.
Since the beginning of the year, gasoline prices have undergone 28 adjustments, including 16 increases, 8 decreases, and 4 unchanged.
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