Oil Prices Plummet to Two-Week Low Amid Middle East Tensions
Oil prices continued to fall sharply on August 27, reaching their lowest level since August 10. Brent and WTI oil prices declined by 0.84% and 0.16%, respectively, at the end of yesterday's trading session. During the morning session, both types of oil maintained a downward trend, with WTI oil price falling to $81.80 per barrel, down $0.43 from its previous close, equivalent to a decrease of 0.52%. Brent oil was at $86.53 per barrel, down $0.02 from its previous close.
The decline in oil prices is attributed to investors monitoring negotiations between Iran and Oman related to the Strait of Hormuz, as well as new developments in the Middle East conflict. The US has no plans to launch new military attacks on Iran in the near future, instead focusing on other pressure measures, including sanctions. According to the US Energy Information Administration (EIA), the country's crude oil inventory increased by 95,000 barrels last week, lower than expected.
Retail gasoline and oil prices according to Petrolimex's price list announced in region 1 and region 2 are as follows: Tu Luc Petroleum Joint Stock Company 1 offers a discount of 1,500 VND per liter for Diesel oil 0.05S-II, while MIPEC Petro (applied to the Northern region) offers E10 gasoline at 1,000 VND per liter.
A representative of a gasoline and oil business predicts that in the next price adjustment period, retail gasoline and oil prices may decrease, with E10 gasoline reduced by about 0-50 VND/liter, E5 RON 92-II gasoline reduced by about 0-50 VND/liter, and Diesel oil decreased by about 600 VND/liter.