Oil prices rise: USA ensures fuel pressure before Memorial Day

Oil prices rise: USA ensures fuel pressure before Memorial Day

On May 25, 2025, oil prices rise due to increased fuel demand in the US and ongoing concerns about the US-Iran nuclear negotiations. Current Brent oil prices are at $65.03 per barrel, up 0.53 percent, while WTI oil prices are up 0.54 percent at $61.76 per barrel. These developments come just before Memorial Day on May 26, which marks the start of the summer driving season in the United States.

Traders fear that unresolved conflicts between the US and Iran could potentially lead to disruptions in crude oil supplies. In this context, negotiators from both nations negotiated the Iranian nuclear program in Rome on May 23, 2025, but without making any significant progress. The key points of contention concern Western concerns about the military use of Iran's nuclear program, which Iran officially continues for civilian purposes.

Background to the negotiations

The talks, held under the auspices of Oman, began on April 12, 2025 and were led by Iranian Foreign Minister Abbas Araghchi and US Special Envoy Steve Witkoff. Despite the ongoing tensions, there is room for optimism: Witkoff signals a willingness to compromise, but at the same time emphasizes that Iran must not develop a nuclear weapon. These discussions should be viewed in particular against the background of the Vienna nuclear agreement, from which the USA withdrew in 2018 under the Trump administration.

Iran is currently enriching uranium to a purity of 60 percent, which is close to weapons-grade material. The Iranian government hopes that the negotiations will lead to an easing of military tensions and the sanctions imposed will be lifted. These hopes have already led to an appreciation of Iran's currency, the rial, against the euro.

Impact on oil prices

Current developments in the oil market are influenced not only by geopolitical tensions, but also by general market conditions. Importantly, OPEC+ plans to increase production by 411,000 barrels per day next July. Analysts expect domestic demand for fuel to increase during the summer driving season.

Gasoline prices have also undergone a small adjustment: as of today, gasoline E5 RON 92 costs VND 19,122 per liter, while RON 95 stands at VND 19,532 per liter. Diesel has increased to VND17,405 per liter. This marks a total of 21 adjustments in domestic gasoline prices since the start of 2025, with 9 decreases and 8 increases. At the same time, the Petroleum Price Stabilization Fund was not used to support fuel prices.