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World oil prices fell slightly at the beginning of the session. Domestic oil prices fell for the second consecutive time.

World oil prices

According to Dailyfx, at 5:30 a.m. on August 30 (Vietnam time), both Brent and WTI crude oil prices decreased slightly. However, many factors are still supporting oil prices to regain momentum during the session.

Oil prices slipped slightly at the beginning of the trading session on August 30 but are likely to rebound during the session. Illustration photo; Oilprice

At the end of the trading session on August 29, oil prices increased by more than 1 USD due to supply disruptions in Libya and plans to reduce production in Iraq, raising concerns about tighter global supplies.

Brent crude rose $1.29, or 1.6 percent, to $79.94 a barrel. WTI crude rose $1.39, or 1.9 percent, to $75.91 a barrel.

According to Reuters, Libya has stopped producing more than half of its oil output (about 700,000 barrels/day) and exporting at some ports due to conflicts between political factions.

So far, Libyan exports have held up, but the closure of the export terminal will further tighten supplies in the Atlantic basin, said Giovanni Staunovo, an analyst at UBS.

Even after the blockade is lifted, traders will have to adapt to the fact that Libya will remain an unknown to the market, according to Aline Carnizelo, managing partner at Frontier Commodities.

Carnizelo said that the amount of oil not produced in Libya is at risk of reaching 1 million barrels/day, so the possibility of a gradual recovery of production before October is unlikely.

The risk of supply shortages is supporting rising oil prices. Illustration photo: Reuters

Meanwhile, Iraq also plans to reduce oil production in September as part of a plan to compensate for overproduction agreed with the Organization of the Petroleum Exporting Countries and its allies (OPEC+). According to Reuters, Iraq’s production in July was 4.25 million barrels per day, and in September production will fall to 3.85 to 3.9 million barrels per day while the agreed quota is 4 million barrels per day.

Carnizelo commented that supplies are tightening and that is pushing oil prices up.

Expectations that the US central bank will start cutting interest rates in September also supported oil prices. Atlanta Federal Reserve Bank President Raphael Bostic said it may be time to cut interest rates as inflation has fallen further and unemployment has risen higher than expected.

Domestic gasoline prices

Domestic retail prices of gasoline on August 30 are as follows:

E5 RON 92 gasoline is not more than 20,332 VND/liter.
RON 95-III gasoline is not more than 21,109 VND/liter.
Diesel oil not more than 18,477 VND/liter.
Kerosene not more than 19,065 VND/liter.
Fuel oil not exceeding 15,562 VND/kg.

The above domestic retail prices of gasoline and oil were adjusted by the Ministry of Finance and the Ministry of Industry and Trade in the price management session on the afternoon of August 29. In this session, the price of diesel oil decreased the most, by 299 VND/liter, followed by RON 95-III gasoline, which decreased by 208 VND/liter. Fuel oil decreased by 194 VND/kg, and E5 RON 92 gasoline decreased by 92 VND/liter. Kerosene decreased the least, by 84 VND/liter.

This is the second consecutive reduction in domestic gasoline prices.

MAI HUONG