Oil hits five-week high in world while gasoline drops in Vietnam

June 26, 2019 | 10:00

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Oil jumped to a five-week high, up approximately 15 per cent since the middle of the month, on the back of increasing tensions between the US and Iran as well as the trade war, while the domestic price of gasoline has been falling.

oil hits five week high in world while gasoline drops in vietnam

Gasoline prices in Vietnam move against global trends

Oil has rallied around 15 per cent since the middle of the month due to escalating tensions in the Middle East. The American Petroleum Institute reported that inventories fell by 7.55 million barrels.

American nationwide oil stockpiles fell by 12.8 million barrels, or 2.7 per cent, to about 470 million barrels in the week through June 21, according to data cited by Bloomberg. Pending confirmation by the US government, this would be the biggest decline in percentage terms since July 6, 2018 and the largest drop in volumes since September 2016.

Furthermore, the meeting of the US and Chinese presidents at the upcoming G20 summit in Japan this weekend is generating some optimism that trade talks may be restarted. Meanwhile, the Organization of Petroleum Exporting Countries and allied producers will decide on production levels for the rest of the year at a meeting next week, Bloomberg reports.

On June 26, 2019, WTI oil witnessed a slight surge of 0.2 per cent to $58.4 per barrel, while Brent oil rose 0.3 per cent to $65.5 per barrel by 7:30 AM Vietnamese time.

Regarding gasoline, the Vietnamese market has seen the third decrease since June 17.

The price of RON95-III dropped to VND 20,134 per litre ($0.875), while E5RON92 also hit the lowest price within three operating periods.

This is the result of the Vietnamese inter-ministry attempts to set up a petrol and gasoline stablisation fund.

By Luu Huong

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