The forecast that US shale oil output fell sharply pushed up the price of oil and gas today to rise sharply in the context that the market expected FED would soon deploy economic stimulus and support packages.
As the early morning of September 16th, Vietnam time, on the New York Mercantile Exchange, WTI light sweet crude oil delivered in November 2020 was at $ 38.70 / barrel, up $ 0.15 / barrel in the session. However, if compared with the same period of September 15th, WTI oil price delivered in November 2020 increased 1.09 USD / barrel.
Meanwhile, the price of Brent oil delivered in November 2020 was at 40.65 USD / barrel, up 0.12 USD / barrel in the session and 0.97 USD / barrel compared to the same period on September 15th.
Oil price on September 16th increased sharply in the context of the market recognizing the possibility that the US shale oil supply would plummet in October 2020.
Specifically, according to the US Energy Information Administration (EIA), shale oil production from the US’s 7 fields in October 2020 could decrease 68,000 barrels/day to 7.64 million barrels / day.
However, the EIA also forecasted the mining in the Permian Basin of Texas and New Mexico will increase by about 23,000 bpd to 4.17 million bpd.
In addition, the oil price increased sharply today because the market expected that FED will soon deploy economic stimulus packages after the meeting today. If this happens that will be an important driver to improve energy demand as production activities recover, which will drive up oil prices.
Besides, the fact that many countries simultaneously announced the results of research on Covid-19 vaccine and deployed on a large scale was also a factor supporting oil price on September 16th.
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).