Oil Prices Reversal: Tensions between US and Iran Continue to Weigh on Market

Oil prices have reversed their upward trend as tensions between the US and Iran continue to escalate. According to recent data, Brent oil price decreased by 0.82 USD/barrel, equivalent to a decrease of 0.97%, while WTI oil price dropped by 0.24 USD/barrel, or 0.26%. The fluctuations come after a sharp increase in oil prices on September 23 amid escalating tensions between the two nations.

The Iranian President's statement at the United Nations General Assembly in New York on September 23, affirming that Tehran will not surrender to the US, has been seen as a key factor affecting the market. The reopening of the Strait of Hormuz and the lifting of Washington's naval blockade against Iran were discussed in indirect talks on September 22.

Regarding supply, the US Energy Information Administration (EIA) reported that US crude oil inventories increased by 3 million barrels in the week ending September 18. Meanwhile, Saudi Arabia offered to sell more oil to Asian refineries with the oil source being delivered at locations outside the Strait of Hormuz.

Domestically, Petrolimex announced a price adjustment for region 1 and region 2, with retail gasoline and oil prices as follows: Tu Luc Petroleum Joint Stock Company 1 increased diesel oil by 0.05S - II by 2,900 VND/liter, while MIPEC Petro (applied to the Northern region) decreased E10 gasoline by 800 VND/liter.

A representative of a gasoline and oil business predicted that in the next price adjustment period, retail gasoline and oil prices may have opposite fluctuations, with gasoline prices slightly increasing and oil prices decreasing. According to their forecast, E10 gasoline is expected to increase by about 200 VND/liter, while diesel oil is anticipated to decrease by approximately 1,400 VND/liter.