Oil prices have increased sharply in recent days following the tension between Russia and the West over Ukraine. The high price of oil and fears of an escalation of war have hit commodity and financial markets.

Oil may reach its lowest price in history this week but its impacts on the world economy and Viet Nam have been limited at this time when the COVID-19 pandemic is keeping people at home and transportation has been cut off.

The group will cut production by 10 million barrels a day from May to combat a fall in demand.

Macroeconomic targets were built with the presumed crude oil price at below $50 per barrel. However, the price has exceeded the $90 per barrel threshold, nearing $100.

The oil price reduction has had a big impact on everyone, from farmers, who are busy working on the rice fields and don’t care about what happens in the US or the Middle East, to stock investors who hold large amounts of oil & gas firms’ shares.

Asian shares and the dollar surrendered their gains on Thursday as recently volatile crude oil prices seesawed lower, although European shares were still expected to mark opening gains.

 Blood-letting in global markets is dominating corridor talk as business leaders and policymakers meet in Davos, although so far the view is that it doesn't signal a financial crisis.

 The Ministry of Finance has developed models for different scenarios that consider the future consequences of oil price slumps to more flexibly manage the State budget in 2016, officials said.

 The Ministry of Finance (MoF) has announced it has prepared plans to cope with the fall in global oil prices but is yet to release any specifics.

The crude oil price in the world market has dropped to around $40 per barrel, as predicted by management agencies. However, the situation may become even worse, as international analysts believe the price could drop to $20 per barrel. 

 VietNamNet Bridge – The Vietnam Oil and Gas Group (PetroVietnam) has plans to speed up crude oil extraction this year to reverse a fall in revenue triggered by the world oil price plunge.

The continued oil price falls will do more good than harm to Vietnam and will lead to a reduction in imports from China, Dr. Luong Van Khoi from the Vietnam National Center for Socio-Economic Forecasting has said.

VietNamNet Bridge – The consumer price index (CPI) increase in 2014 was lower than the gross domestic product (GDP) growth rate in the year.

 VietNamNet Bridge – Vietnamese officials and experts have denied that the world’s oil price has dropped to below $55, while the exploitation cost in Vietnam is $50-70 per barrel.

VietNamNet Bridge – Oil & gas companies have seen their stock prices plummeting as oil prices have dropped.

 The falling oil price is costing Russia up to $100bn a year, while Western sanctions have hit the country by $40bn, its finance minister has said.

 Oil prices have risen to a nine-month high amid concerns that developments in Iraq may affect global supplies.

U.S. stocks soared on Thursday, lifting the Dow Jones Industrial Average and the S&P 500 to their all-time closing highs, boosted by Federal Reserve Chaiman Ben Bernanke's recent dovish speech which eased fears of an early stimulus pullback.