The world oil price dropped sharply, below the threshold of 90 USD/barrel, the lowest level in the past 6 months. The price of imported gasoline is now close to 100 USD/barrel, so the price of domestic gasoline and oil in the next operating period is forecasted to continue to decrease.
The world oil price plummeted in the past week, to less than 100 USD/barrel. At the last session of the week (August 7, Vietnam time), the price of Brent crude oil was at USD 94.94/barrel, while WTI oil was at USD 89.01/barrel. For the whole week, the price of Brent crude oil fell by 11%, while the price of WTI fell 8%.
At the beginning of this week, world oil prices continued to go down. According to data from Oilprice, at 6:35 pm on August 8 (Vietnam time), the price of Brent crude oil for October delivery was trading at 93.24 USD/barrel, down 1.68 USD, equivalent to 1.77 % from yesterday. At the same time, the price of WTI oil for September delivery was trading at 87.5 USD/barrel, down 1.51 USD, equivalent to 1.7% compared to yesterday.
Thus, the world oil price is now approaching the price before the Russia-Ukraine conflict broke out in early February.
According to analysts, the relatively tight supply along with recession fears are still the main factors that cause the price of “black gold” to continue to plunge. In addition, falling oil prices were also affected by the strength of the greenback. Besides, oil prices went down due to reduced demand. According to the US Energy Information Administration, the country’s gasoline demand has decreased by 1 million barrels per day compared to July 2020.
Will gasoline prices continue to fall? (Photo: Mr. Nguyen)
Meanwhile, the price of finished gasoline on the Singapore market has now returned to nearly 100 USD/barrel. Specifically, according to data from the Ministry of Industry and Trade, the price of gasoline imported from Singapore as of August 7 has decreased to 103 USD/barrel. This is the lowest price in the past 7 months.
This price is equivalent to the price at the end of January, when the retail price of gasoline was 24,360 VND/liter. Thus, if subtracting the environmental protection tax of 3,300 VND, the price of imported gasoline is currently just over 21,000 VND/liter.
Meanwhile, in the domestic market, on August 11, gasoline prices will enter a new adjustment period. Therefore, the sharp drop in imported gasoline prices will be the basis for domestic gasoline prices to continue to lower.
According to leaders of some petroleum importers, if the world oil price continues to plunge, the imported gasoline price still cools down or stays flat in the coming days, the domestic gasoline and oil prices in the operating period on August 11 will continue to decrease. However, the specific reduction depends on the fluctuations in world gasoline and oil prices in the next few days as well as the deduction and expenditure for the Petroleum Stabilization Fund of the operating agency.
Since the beginning of the year, domestic gasoline and oil prices have adjusted 20 times, including 13 increases and 7 decreases.
After the most recent operating period (on August 1st), the retail price of E5 RON 92 gasoline is not more than 24,620 VND/liter; RON 95 gasoline is not more than 25,600 VND/liter, equivalent to the price in February. Meanwhile, the price of diesel oil 0.05S is 23,900 VND/liter, the price of kerosene is not higher than 24,530 VND/liter, the price of fuel oil is 180CST 3.5S not higher than 16,540 VND/kg.