Gasoline prices have fallen sharply despite tensions between the US and India.

OPEC+ production increases, world oil prices plummet amid US threats of sanctions against India.

In Wednesday's trading session, world oil prices continued to fall as increased production from OPEC+ and concerns about global demand overshadowed the impact of political tensions between the US and India over Russian oil.

Specifically, Brent crude oil prices fell $1.12 (1.63%) to $67.64 per barrel. US WTI crude oil prices also fell $1.13 (1.7%) to $65.16 per barrel. Both hit their lowest levels in five weeks.

This development comes after OPEC+ announced plans to increase production by 547,000 barrels per day in September, thus ending the recent production cuts early.

In addition, US economic data also dampened market optimism. Service sector activity in July was virtually unchanged, orders stagnated, and employment weakened, while input costs rose at their sharpest rate in nearly three years.

President Donald Trump continued to pressure India by declaring he would impose higher tariffs within 24 hours if the country did not reduce its oil imports from Russia. He also suggested that falling energy prices could force Russia to halt its hostilities in Ukraine. New Delhi reacted strongly, calling the warning "absurd" and vowing to protect its economic interests.

Nevertheless, the oil market's reaction suggests that investors are not expecting significant supply disruptions. Some experts even believe that oil prices will remain stable until there is clearer information from the US this week.

India is currently the largest importer of seaborne crude oil from Russia, averaging around 1.75 million barrels per day in the first half of this year – a 1% increase compared to the same period last year.

Also last week, U.S. crude oil inventories fell by 4.2 million barrels, according to data from the American Petroleum Institute (API). The U.S. Energy Information Agency (EIA) is expected to release official figures on Wednesday.

Domestic fuel prices

Domestic retail prices for gasoline and diesel on August 6th are as follows:

- E5RON92 gasoline: Not exceeding 19,401 VND/liter

- RON95-III gasoline: Not exceeding 19,840 VND/liter

- Diesel fuel 0.05S: Not exceeding 19,068 VND/liter

- Kerosene: Not exceeding 18,714 VND/liter

- Fuel oil 180CST 3.5S: Not exceeding 15,533 VND/kg

The aforementioned domestic retail fuel prices were adjusted by the Ministry of Industry and Trade and the Ministry of Finance effective from July 31st. Accordingly, the price of E5RON92 gasoline increased by 122 VND/liter; RON95-III gasoline increased by 131 VND/liter; diesel decreased by 61 VND/liter, kerosene increased by 86 VND/liter, and mazut increased by 154 VND/kg.

During this price adjustment period, the Ministry of Industry and Trade and the Ministry of Finance did not allocate or utilize the Fuel Price Stabilization Fund for E5RON92 gasoline, RON95 gasoline, diesel fuel, kerosene, and fuel oil.

According to the inter-ministerial committee, the global oil market during this price adjustment period was influenced by key factors such as: information regarding the framework trade agreement between the US and the EU; increased US crude oil inventories; and the ongoing military conflict between Russia and Ukraine... These factors caused global oil prices to fluctuate up and down in recent days, depending on the specific product.