Gasoline price today October 14, 2024: World oil price slightly decreased
Oil prices today October 14, 2024: World oil prices decreased slightly, contrary to predictions of the second oil price increase in October, due to the impact of political instability in the Middle East.
World oil prices
US WTI crude oil prices fell to $74.32 per barrel on October 14, down 1.63% from October 11. Brent crude oil prices also fell, reaching $77.76 per barrel, down 1.62% from October 11. International crude oil markets recorded a price decrease of $1-1.4 per barrel, about 2% from the end of last week.
In October, WTI oil prices increased by 7.7% and Brent oil increased by 6.8% compared to the previous month.
From October 7 to 11, WTI oil prices increased by an average of $1.51 per barrel and Brent oil prices increased by $1.22 per barrel. At one point during the week, Brent oil prices increased by more than $79.3 per barrel, an increase of more than $1.7 per barrel.
Despite rising tensions in the Middle East, the likelihood of oil prices returning to $120 a barrel is low due to abundant supply and weak demand.
Consumers are concerned about oil prices, especially with the conflict between Israel and Hamas. A full-scale war in the Middle East, which produces a third of the world's crude, could have dire consequences.
In the past, the conflict between Russia and Ukraine has sent oil prices soaring, but now, abundant supplies mean the market is less affected by the volatility. The current global economic situation is a far cry from 2022, when oil demand surged after Covid-19 lockdowns.
OPEC+ has failed to keep oil prices high by restricting supply, and Saudi Arabia has abandoned its $100/barrel target. OPEC+ has the ability to increase oil production thanks to spare capacity, and Libya has restored its oil production.
While abundant supply helps mitigate the risk of geopolitical shocks, it is not a complete buffer. Military actions such as an Israeli attack on Iran’s oil infrastructure could cause major volatility in the oil market.
Domestic gasoline prices
Domestic retail prices of gasoline on October 13 are as follows:
E5 RON 92 gasoline is not more than 19,846 VND/liter.
RON 95-III gasoline is not more than VND 21,061/liter.
Diesel oil not more than 18,500 VND/liter.
Kerosene not more than 18,790 VND/liter.
Fuel oil not exceeding 15,911 VND/kg.
The rise in global oil prices could pose a challenge for Vietnam, a major oil importer. The increase in oil prices could lead to inflation and affect the country’s monetary policy.
Financial expert Tran Dinh Phuong said that high oil prices will increase transportation costs and affect the prices of many other goods, including food. The State Bank of Vietnam may face challenges in controlling inflation and maintaining economic growth.
Despite concerns, inflation is currently well controlled, helping to minimize risks from rising fuel prices. The State Bank has more space to adjust monetary policy in response to new fluctuations.
According to the General Statistics Office, inflation is under control and supporting economic growth. The CPI in September increased by 2.63%, lower than previous years. In the first 9 months of 2024, the CPI increased by 3.88%, possibly reaching the National Assembly's inflation target of 4%-4.5%.
Despite facing exchange rate pressure, Vietnam has overcome it thanks to flexible monetary and fiscal policies, not allowing oil prices to seriously affect the economy.