Reaching New Heights: The Thrilling Second Week of Our Epic Climb
World oil prices recorded another week of acceleration. Domestic oil prices have fluctuated in different directions.
World oil prices
Oil prices continued to recover the losses of previous weeks this week. Both Brent and WTI gained more than 4%, much higher than last week and marking the second consecutive week of gains.
Oil prices recorded another week of gains. Illustration photo: Anadolu Ajunsu
Oil prices jumped about 2% in early trading on Monday as the U.S. Gulf Coast has yet to restore 12% of crude oil production and 16% of natural gas production following Hurricane Francine. The storm’s impact has “overshadowed” persistent concerns about Chinese demand.
Oil prices extended their gains into a second session, rising just over 1%. Supporting the gains were growing supply disruptions, traders betting on increased demand if the Federal Reserve cuts interest rates by 50 basis points, continued tensions in the Middle East and Libyan crude exports recovering to about half of last month’s levels.
Oil prices fell less than 30 cents on Tuesday, despite the Fed cutting interest rates as expected by half a percentage point. Economists worry that a weaker U.S. labor market could slow the economy, although rate cuts typically boost economic activity and energy demand. Limiting oil’s decline during the session was data from the U.S. Energy Information Administration showing that U.S. crude inventories fell 1.6 million barrels to 417.5 million barrels in the week to Sept. 13.
It wasn’t until Wednesday’s trading session that the US central bank’s decision to raise interest rates really pushed oil prices up by more than $1. Along with this interest rate decision, another factor supporting prices is still the tension in the Middle East.
Will oil prices record a hat-trick of increases next week? Illustration photo: Oilprice
Oil prices reversed course once again in the final trading session of the week. Brent crude fell 39 cents and WTI crude fell 3 cents to end the week at $74.49 a barrel and $71.92 a barrel, respectively.
With 3 sessions increasing by at least 1% and 2 sessions decreasing slightly, oil prices this week marked another week of climbing.
According to analysts, the Fed’s initiation of a new monetary easing cycle has pushed the USD down, the macro risk outlook has improved, so next week may see further increases.
Domestic gasoline prices
Domestic retail prices of gasoline on September 22 are as follows:
E5 RON 92 gasoline is not more than 18,941 VND/liter.
RON 95-III gasoline is not more than 19,762 VND/liter.
Diesel oil not more than 17,043 VND/liter.
Kerosene not more than 17,551 VND/liter.
Fuel oil not exceeding 14,826 VND/kg.
The above domestic retail prices of gasoline and oil were adjusted by the Ministry of Finance – Industry and Trade in the price management session on the afternoon of September 19. Gasoline and oil prices fluctuated in the opposite direction with gasoline prices increasing and oil prices decreasing. Specifically, E5 RON 92 gasoline increased by 51 VND/liter, RON 95-III gasoline increased by 127 VND/liter, diesel decreased by 122 VND/liter, and kerosene decreased by 239 VND/liter. In contrast to diesel and kerosene, fuel oil increased by 359 VND/kg. This is the first increase in gasoline prices in the past 5 weeks.
In this operating period, the joint ministries did not set aside or use the Petroleum Price Stabilization Fund for E5 RON 92 gasoline, RON 95 gasoline, diesel oil, kerosene, and fuel oil.
MAI HUONG