Oil prices skyrocketed by 30 percent after Russia launched military action against Ukraine, resulting in western sanctions on the former that have disrupted supply chains.
With oil prices currently hovering well above US$100 per barrel, Vietnamese companies in the sector are benefiting, leading enterprise Petrovietnam said.
State budget revenues from crude oil have surged 57 percent in the first two months of the year, and have topped 29 percent of the full-year target, according to the Ministry of Finance.
Russia is the world’s third largest exporter after the United Arab Emirates and Saudi Arabia.
Bao Viet Securities (BVS) expected surging demand and the supply disruption to drive prospecting for oil and benefit exploration and drilling companies like PetroVietnam Drilling & Well Services Corporation (PVD) and PetroVietnam Technical Services Corporation (PVS).
Refining, transport and distribution companies are also expected to gain as domestic demand recovers after Covid-19.
The Ministry of Industry and Trade recently instructed distributors to import 2.4 million cubic meters of gasoline in the second quarter to ensure adequate supply after Nghi Son, the country’s biggest oil refinery, cut its output to 80 percent due to financial shortage.
The transition to renewables is irreversible, but the soaring oil prices are an opportunity for the industry to boost production and restructure, he said.
However, it also needs to brace itself for risks from the rising prices since that would affect demand.