Concerns about oversupply continued to push oil prices down, especially after the news that Iraq could withdraw from the OPEC + deal and India’s crude oil imports fell sharply.
As the early the morning of September 15th, Vietnam time, on the New York Mercantile Exchange, WTI light sweet crude oil delivered in November 2020 was at 37.61 USD / barrel, up 0.05 USD / barrel in the session. However, if compared with the same period of September 14th, the WTI oil price delivered in November 2020 decreased by 0.08 USD / barrel.
Meanwhile, the price of Brent oil delivered in November 2020 was at 39.68 USD / barrel, up 0.07 USD / barrel in the session but decreased 0.11 USD / barrel compared to the same period on September 14th.
Oil prices on September 15th fell amid concerns about the growing supply-demand imbalance in the crude oil market.
Indian Oil Minister Dharmendra Pradhan said on September 14th that the country’s crude import bill was reduced by 1/3 in the first four months of fiscal 2020/2021 (ending in late March 2021).
Specifically, according to PTI, India spent 12.4 billion USD to import about 57 million tons of crude oil in the period from April to July 2020 compared with 36.2 billion USD for importing 74.9 million tons in the same period last year.
India depends on 85% of imported crude oil to meet domestic fuel needs. The national blockade reduced India’s fuel consumption by nearly 50% to 9.89 million tons in April 2020.
Elsewhere, Iraq is expected to withdraw from the OPEC + output cut agreement from the first quarter of 2021 when the government is under more internal pressure and there are more and more proposals to withdraw the agreement in the context of low world oil prices.
While 97% of the country’s budget depends on crude oil exports and needs to mobilize more resources to revive the domestic oil industry, other countries (including OPEC members) are benefiting from the agreement and increase market share. Baghdad is having difficulty in simply cutting output according to its original commitment, not to mention the additional debt cut of 851,000 bpd. Iraq said it was treated unfairly in 2016, when it made an exception list that included Libya, Nigeria, Iran and Venezuela. The move came after many US energy companies, including ExxonMobil and Chevron, signed a series of oil and gas exploration and exploitation agreements in Iraq worth $ 8 billion last month.
In addition, the rise of the Covid-19 epidemic in many countries combined with the prospect of a difficult economic recovery has also raised concerns about the possibility of improving oil demand, thereby putting pressure on oil prices today.
In the domestic market, today’s oil and gas prices are as follows: The gasoline price E5 RON 92 is not higher than 14,266 VND / liter (down 143 VND / liter compared to the current price); RON 95-III gasoline price is not higher than 14,984 VND / liter (down 130 VND / liter); 0.05S diesel oil is not higher than 11,518 VND / liter (down 443 VND / liter); kerosene is not higher than 9,593 VND / liter (down 532 VND / liter); mazut oil 180CST 3.5S not more than 10,943 VND / kg (down 240 VND / kg).