Gasoline prices may decrease by more than 1,000 VND/liter next week

At the end of the trading session at the end of the weekend, world oil prices continued to plummet, down about 7%. WTI crude oil was at 61.99 USD/barrel, Brent oil decreased to 65.58 USD/barrel.

Oil prices fell sharply in the session due to the impact of the news of China increasing tariffs on US goods, escalating the trade war, causing investors to predict the possibility of a recession will be higher.

Previously, in the session of April 3, both oil products simultaneously decreased by more than 6%. Overall last week, Brent oil prices decreased by 10.9%, while WTI oil prices recorded a decrease of 10.6%.

According to Reuters, the main reason for the sharp decline in oil prices is because China - the largest oil importer in the world - supplemented the additional tax rate of 34% for all goods from the US since April 10. The move came after US President Donald Trump increased the import tax to the highest level in more than a century. These escalating tensions not only wobble the oil market but also lead to the plunge of many other goods such as natural gas, soy and gold, and at the same time make the global stock market red.

JPMorgan Investment Bank assessed that the risk of a global economic recession by the end of this year has increased to 60%, 20 percentage points higher than the previous forecast. According to experts, crude oil prices are currently close to a reasonable value in the short term, but are still under great pressure from the prospect of weakening demand. It is expected that in the coming time, WTI oil prices may fluctuate between 50-55 USD/barrel if negative signals about the economy continue to spread.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) also put more pressure on oil prices when deciding to accelerate production plans. In May, this group plans to pump an additional 411,000 barrels/day into the market, much higher than the original plan of only 135,000 barrels/day.

From a policy perspective, Federal Reserve Chairman Jerome Powell recently warned of economic challenges in the coming time, especially related to tax policy and external risks, which could lead to high inflation and slowing growth.

For the domestic market, sharing with reporters, a representative of a petroleum business said that domestic petroleum prices will fluctuate according to the world petroleum situation. According to current developments, it is forecasted that in the next price management period, retail prices of gasoline may decrease sharply.

It is forecasted that RON 95 gasoline prices may decrease by about VND 1,000-1,400/liter; E5 gasoline may decrease by about VND 900-1,200/liter; Diesel oil may decrease by about VND 700-1,000/liter.