The expectation of oil demand will recover by 97% by the end of this year compared to before the Covid-19 epidemic has brought up the price of oil and gas today
In the early morning of August 21st, Vietnam time, on the New York Mercantile Exchange, the WTI light sweet crude oil delivered in October 2020 was at 42.84 USD / barrel, up 0.02 USD / barrel in the session.
Meanwhile, Brent oil price delivered in October 2020 was at 45.02 USD / barrel, up 0.12 USD / barrel during the session.
Oil prices on August 21st increased slightly in the context of a lot of positive information from the monthly OPEC + monitoring meeting held online on August 19th.
Accordingly, just before the meeting, Saudi Energy Minister Prince Abdulaziz said that global oil demand is expected to recover to near pre-pandemic levels by the end of this year. Prince Abdulaziz expects that oil demand can recover at 97%.
As noted at the meeting, Russia and Saudi Arabia demanded strict implementation of the production cut under the OPEC + agreement.
Specifically, speaking at the meeting above, Russian Minister Alexandre Novak emphasized the “fragility” of the market and the “uncertainties” surrounding “black gold” demand. According to him, the obligation to cut production within the framework of OPEC +, namely the 13 members of the Organization of Petroleum Exporting Countries (OPEC) and 10 allied producing countries, was met 95% in July 2020.
“But we cannot stop there, we must ensure absolute respect for the OPEC + agreement,” Novak asked.
Saudi Energy Minister Abdel Aziz bin Salman said: “Over the last 3 months, the fundamentals of the world oil market have improved significantly. We are seeing encouraging signs of a recovery in energy demand as economic activity continues to reopen in many parts of the world.
Previously, in April 2020, OPEC + had an agreement to cut production by 9.7 million barrels / day starting from May 2020. These cuts are extended until the end of July 2020 before OPEC + loosened the agreement to adjust the cut to 7.7 million barrels a day from August 2020. OPEC + ‘s effort to cut output is considered effective as it has supported oil prices to gradually recover in the past.
In the domestic market, today’s oil and gas price is as follows: E5 RON92 gasoline price is not higher than 14,409 VND / liter; gasoline price RON95-III is not higher than 14,922 VND / liter; Diesel oil price of 0.05S is not higher than 12,201 VND / liter; kerosene price is not higher than 10,207 VND / liter; mazut oil price 180CST 3.5S not higher than 11,183 VND / kg.