Oil and pepper continue to increase, gas drops sharply in the last session of the week
(Baonghean.vn) - On July 8, world oil prices continued to increase; domestic pepper prices also increased by 500 VND/kg; meanwhile, gas prices in the world market decreased.
Gasoline prices continue to rise
Gasoline pricesToday, July 8, the world market continued to increase since the beginning of the week, due to increased US consumption demand.
In the domestic market, the selling prices of gasoline and oil today are applied according to the prices at the management session on the afternoon of July 3 of the Ministry of Finance - Industry and Trade. Accordingly, gasoline and oil prices are adjusted down.
Accordingly, the price of RON 95 gasoline dropped to VND21,420/liter. The price of E5 RON 92 gasoline dropped to VND20,470/liter. The price of diesel oil was VND18,160/liter. The price of kerosene was VND17,920/liter.
Aboveworld market,Gasoline prices today (July 8) continue to increase from the beginning of the week.
On July 7, gasoline prices continued to rise due to concerns about tight supply.
According to data from Oilprice, at 11:08 a.m. on July 7 (Vietnam time), Brent crude oil price reached 76.79 USD/barrel, up 0.27 USD, equivalent to 0.35% compared to the previous session. WTI crude oil price was at 72.06 USD/barrel, up 0.26 USD, equivalent to 0.36% compared to the previous session.
At 7:43 p.m. on July 7 (Vietnam time), Brent oil price reached 76.88 USD/barrel, up 0.36 USD, equivalent to 0.47% compared to the previous session. WTI oil price was at 72.17 USD/barrel, up 0.37 USD, equivalent to 0.52% compared to the previous session.
According to analysts, oil prices continue to rise thanks to increased demand in the US - the world's largest oil consumer.
The US Energy Information Administration (EIA) said that the country's crude oil inventories fell more than expected due to strong refining demand, while gasoline inventories fell sharply due to increased driving demand last week.
Many experts predict that the outlook for crude oil demand in the US is showing signs of improvement as the summer tourist season in the country approaches.
Rising oil demand led to a larger-than-expected drop in US crude inventories, overshadowing concerns about the prospect of higher US interest rates.
In addition, this week, the world's top oil exporters Saudi Arabia and Russia announced plans to voluntarily cut production in August.
According to calculations, the total oil production cut by members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in August will amount to more than 5 million barrels/day, equivalent to 5% of global oil production.
However, the increase in oil prices has been somewhat limited by unfavorable global macroeconomic factors and the trend of raising interest rates by central banks around the world.
World Gas Market Falls Sharply
Could not maintain the upward momentum of the past few daysgas priceToday, July 8, 2023, the world market fell sharply by 1.76%.
Natural gas futures neared $3 in the previous session as warmer temperatures could prompt Americans to crank up their air conditioners more than usual this summer, Investing.com reported.
In recent months, a series of long-term LNG deals have been signed, including from buyers in Europe, where energy security has become central due to concerns about emissions from natural gas imports.
China is on track to become the world's largest importer of liquefied natural gas (LNG) by 2023. This year is also the third consecutive year that Chinese companies have signed more long-term LNG import deals than any single country.
The spike in gas prices caused by the Russia-Ukraine conflict and the global competition for LNG cargoes has provided an immediate lesson in supply stability. To ensure energy security, China has diversified its imports from a variety of countries, as a buffer against supply disruptions due to geopolitical upheaval.
That also shows that China is taking a long-term view to avoid a repeat of energy shortages as it pushes economic growth. In particular, long-term LNG contracts are attractive because they promise shipments at relatively stable prices compared to the spot market, where gas prices have surged to all-time highs following the Russia-Ukraine conflict.
According to European Gas Infrastructure, the European Union (EU) gas storage facilities are almost 74% full, about 20% higher than the five-year average for this time of year. Europe is on track to reach its target of 90% gas storage capacity by November this year.
The EU began storing gas at the beginning of the year, but flows have slowed recently due to high demand from industrial consumers. However, in early June, gas storage sites in Europe were 48% above the 10-year average for the same period, according to Reuters.
Also in June 2023, natural gas prices increased by 38% mainly due to concerns about hot weather in Northern Europe and unplanned production shutdowns in Norway due to maintenance at the Oseberg natural gas field.
If the summer gets hotter overall, it will quickly put pressure on supplies of natural gas used in air conditioning, according to a report from Natural Gas World (NGW).
Although European gas prices remain well below levels last summer, when the continent was locked in an energy standoff with Russia, the rapid rise in June shows the region remains vulnerable to any supply disruptions following a drop in imports from Russia.
In the domestic market, after a sharp decrease in June to 35,500 VND/12 kg cylinder, from July 1, 2023, each 12 kg gas cylinder delivered to consumers will be further reduced by about 18,000-18,500 VND, depending on the brand.
For example, Saigon Petro Company Limited announced that from July 1, its gas price will decrease by VND18,500/12 kg cylinder and the retail price to consumers will be VND347,000/12 kg cylinder.
Similarly, the City Petro gas brand also announced a reduction of VND18,000/12 kg cylinder. Accordingly, the retail price to consumers is VND385,000/12 kg cylinder; VND1,443,500/45 kg cylinder...
Thus, domestic gas prices have decreased sharply twice in a row after increasing once. Since the beginning of the year, gas prices have increased twice and decreased five times, with a total decrease of more than VND 140,000 per 12 kg cylinder. Currently, this fuel price is equivalent to April 2022.
The decline in domestic gas prices this time is due to the world gas price in July closing at 387.5 USD/ton, down 57.5 USD/ton compared to June. Currently, about 60% of domestic gas is imported, so gas prices are controlled and affected by world prices.
Domestic pepper price increased by 500 VND/kg
Pepper priceToday, July 8, 2023, the domestic market adjusted up 500 VND/kg in key regions. Accordingly, in the Central Highlands region, pepper prices were purchased by traders around 67,500 - 68,500 VND/kg. Specifically, Chu Se pepper price (Gia Lai) was purchased by traders at 67,500 VND/kg, an increase of 500 VND/kg. In Dak Lak, pepper prices remained at 68,500 VND/kg, an increase of 500 VND/kg. In Dak Nong, pepper prices today were at 68,500 VND/kg, an increase of 500 VND/kg.
In the Southeast region, pepper prices today have not fluctuated compared to yesterday. Currently, pepper prices in this region are being purchased around the mark of 69,000 - 70,500 VND/kg.
In Dong Nai, pepper price is at 69,000 VND/kg, up 500 VND/kg. In Binh Phuoc, pepper price is at 69,500 VND/kg, up 500 VND/kg. In Ba Ria Vung Tau, the price is still the highest and today it is purchased by traders at 70,500 VND/kg, up 500 VND/kg.
Thus, pepper prices today increased by 500 VND/kg in key regions. The reason for the increase in pepper prices is partly due to the cooling of the USD price, making commodity markets less burdened and more prosperous.
In the world market, according to the International Pepper Community (IPC), the price of Indonesian pepper has been updated and listed at a decrease. Accordingly, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 3,719 USD/ton, down 0.32%; the price of Muntok white pepper at 6,364 USD/ton, down 0.33%.
In the remaining countries, pepper prices remained stable. Currently, the price of Brazilian black pepper ASTA 570 is at 3,050 USD/ton; the price of Kuching (Malaysia) black pepper ASTA remains at 4,900 USD/ton; the price of Malaysian white pepper ASTA remains at 7,300 USD/ton.
Vietnam black pepper price is traded at 3,500 USD/ton for 500 g/l, 3,600 USD/ton for 550 g/l; white pepper price is at 5,000 USD/ton.
The Vietnam Pepper and Spice Association said that with the current mentality of waiting for orders from the market, the association recommends that businesses need to consider and be alert, carefully assessing their financial capacity when signing large quantity contracts, long-distance delivery, at low prices.
The reason is that when the harvest season comes, pepper prices in other countries will drop, but by the time businesses need to deliver, prices have increased. If they do not buy enough to deliver, they will face risks and losses as happened in the 2022 crop season, affecting business reputation.
In addition, businesses need to be proactive in finding new markets, actively participating in trade promotion programs, international exhibitions and registering early to have a good position, connecting with customers in the face of competition from other manufacturing countries such as Brazil, Indonesia, Sri Lanka...