Oil prices today increased in the context of reduced production by the Organization of the Petroleum Exporting Countries (OPEC), instability in Libya and sanctions against Russia, which increased concerns about the global economic downturn leading to a decrease in demand.
A Reuters survey showed that in June, OPEC's 10 members' output fell by 100,000 barrels/day to 28.52 million barrels/day. Thus, this production level did not meet the previous commitment of about 275,000 barrels/day.
Analysts from ANZ Research said that the increase in output of Saudi Arabia and other major producers could compensate for the decline in output in Nigeria and Libya. However, Libya's oil exports have fallen by 865,000 barrels per day due to political instability.
Another factor in tightening supply is a planned strike by Norwegian oil and gas workers today, which could reduce about 130,000 barrels/day of oil and gas output of Western Europe's largest oil producer.
Expert Stephen Brennock at oil and gas services company PVM said that if oil production is not replenished, prices will be pushed higher.
Meanwhile, on Reuters, Tina Teng, an analyst at CMC Markets, said that oil's rally may be held back partly due to concerns about a global economic downturn. Increased interest rates and declining consumer confidence have reduced fuel demand prospects. On the other hand, a strong greenback also weakens commodity markets, including crude oil prices, Tina Teng said.
Domestic retail prices of petroleum on July 5 are specifically as follows: E5 RON 92 gasoline is not more than VND 30,891/liter; RON 95 gasoline is not more than VND 32,763/liter; diesel is not more than VND 29,615/liter; kerosene is not more than VND 28,353/liter and mazut is not more than VND 19,722/kg.
