Global Oil Prices Fall for Second Week as Vietnam Cuts Fuel Prices
Brent and U.S. WTI crude both fell about 2.5% in the week ending November 13 amid concerns about a global oil surplus. Vietnam lowered fuel prices on November 12, setting the new E5RON92 gasoline price at 19,399 Vietnamese dong per liter.
At the November 13 close, Brent crude was unchanged at $95.84 per barrel, while U.S. WTI crude fell 0.2% to $88.56 per barrel. Both benchmarks declined about 2.5% for the week, their second consecutive weekly drop. In the preceding week, Brent and WTI fell 16% and 13%, respectively.
Markets are watching signs of a global oil surplus. A report released by the International Energy Agency on November 13 showed that the global oil surplus had increased. The U.S. Energy Information Administration said on November 12 that U.S. crude and fuel inventories rose in the previous week as demand for refined products weakened and crude imports increased sharply.
The situation in the Middle East continues to create uncertainty for oil prices. The Strait of Hormuz is a key route for crude exports from major Middle Eastern producers. Iran’s military said on November 12 that four oil tankers had been struck by explosions in the waterway; the claim had not been independently verified at the time.
Vietnam’s Ministry of Industry and Trade and Ministry of Finance adjusted fuel prices on the afternoon of November 12. Following the adjustment, E5RON92 gasoline cost 19,399 Vietnamese dong per liter, down 1,499 dong from the previous pricing period; E10RON95-III gasoline cost 19,845 dong per liter, down 1,311 dong; and 0.05S diesel cost 26,822 dong per liter, down 1,874 dong.
Source: VietVance
