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| Oil prices today, January 14, the world witnessed a week of price declines despite escalating geopolitical tensions in the Middle East. (Source: Oilrprice) |
Oil prices started the trading week with a sharp decline of more than 3%, strongly affected by the decision of the world's leading oil exporter Saudi Arabia to cut the price of Arab Light crude to the Asian market by $2 next month and OPEC's increased production in December 2023. Accordingly, the price of Arab Light crude fell to only $1.50/barrel - the lowest level in 27 months.
The conflict in the Middle East has not shown any signs of abating, along with the shutdown of Libya's Sharara oil field with a capacity of 300,000 barrels/day causing supply disruptions. These are factors that supported Brent and WTI oil to increase by about 2% in the second trading session of the week.
According to Reuters , the Israeli military said the war against Hamas will continue this year, raising concerns that the Israel-Hamas conflict could escalate into a regional crisis.
However, the rally in oil prices was quickly interrupted by data showing a surprise rise in US crude inventories, raising concerns about demand in the largest oil market.
At the end of the third trading session of the week, oil prices fell nearly $1 after data from the US Energy Information Administration (EIA) showed that US crude oil inventories in the week ending January 5 unexpectedly increased by 1.3 million barrels to 432.4 million barrels, contrary to analysts' expectations of a decrease of 700,000 barrels in a Reuters poll. Also according to EIA, gasoline inventories increased by 8 million barrels, distillate inventories increased by 6.5 million barrels.
Oil prices rose about 1% on Wednesday after Iran seized the Marshall Islands-flagged oil tanker St. Nikolas off the coast of Oman. Oil prices gave up early gains after data showed U.S. consumer inflation rose 3.4% year-on-year in December, compared with the 3.2% gain expected by economists polled by Reuters . The higher-than-expected inflation dampened expectations that the Federal Reserve will cut interest rates in March.
Oil prices have been rising and falling alternately in the four trading sessions of the week. On the fifth trading session, oil prices have ignored this trajectory and maintained the upward momentum of the fourth trading session.
Despite adding another 1% to the impact of more tankers diverting from the Red Sea following overnight air and sea strikes by the US and UK on Houthi targets, oil prices this week marked a weekly decline with Brent down 0.5% to $78.29 a barrel and WTI down 1.1% to $72.68 a barrel.
The notable point this week is that Brent oil price at one point jumped above 80 USD/barrel and WTI oil at one point touched 75.25 USD/barrel - the highest level recorded since the beginning of the year.
Domestic retail prices of gasoline on January 14 are as follows:
E5 RON 92 gasoline is not more than 21,041 VND/liter. RON 95-III gasoline is not more than 21,935 VND/liter. Diesel oil not more than 19,707 VND/liter. Kerosene not more than 20,331 VND/liter. Fuel oil not exceeding 15,815 VND/kg. |
The above domestic retail prices of gasoline and oil were adjusted up slightly in the price management session of the Ministry of Finance - Industry and Trade on the afternoon of January 11. Kerosene price increased the most, 374 VND/liter; RON 95-III gasoline price increased the least, 19 VND/liter.
In this operating period, the joint ministries set aside the Price Stabilization Fund for fuel oil at 300 VND/kg, did not set aside the Price Stabilization Fund for gasoline, diesel and kerosene, and did not use the Price Stabilization Fund for all products.
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