In the first trading session of the week on January 8 (Vietnam time), oil prices increased due to escalating tensions in the Middle East when Iran sent warships into the Red Sea area and Houthi forces continued to attack commercial ships.
Entering the session on January 9 (Vietnam time), oil prices were affected by increased supply and competition from other producers, causing Saudi Arabia to reduce the selling price of Arab Light crude oil for February 2024 to Asia by 2 USD, to the lowest level in 27 months.
The conflict in the Middle East has not shown any signs of cooling down, along with the closure 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 prices to increase in the trading session on January 10 (Vietnam time).
However, the increase in oil prices was halted in the session on January 11 (Vietnam time) because data showed that US crude oil reserves increased sharply, raising concerns about demand in the largest oil market.
The US Energy Information Administration (EIA) reported that as of January 5, US crude oil inventories increased by 1.3 million barrels to 432.4 million barrels, contrary to analysts' expectations for a decrease of 700,000 barrels in a Reuters poll. The EIA also said gasoline inventories increased by 8 million barrels and distillate inventories increased by 6.5 million barrels.
News that Iran seized the oil tanker St. Nikolas off the coast of Oman sent oil prices up in the session on January 12 (Vietnam time).
The US and UK said they would take new measures if Houthi attacks continued. The UN Security Council also passed a resolution demanding an end to Houthi attacks.
At the last trading session of the week on January 13 (Vietnam time), oil prices continued to increase as more and more oil tankers diverted from the Red Sea due to air and sea attacks by the US and UK.
While the diversion is expected to push up the cost and time of shipping oil, supply has not been affected, analysts said, easing some of the earlier price gains.
For the week as a whole, Brent crude oil prices fell 0.5% and WTI crude oil prices fell 1.1%. Notably, Brent crude oil prices at one point jumped above $80/barrel and WTI crude oil prices at one point hit $75.25/barrel - the highest level recorded since the beginning of the year.
The retail price of domestic gasoline on January 14 is as follows: E5 RON 92 gasoline is not more than VND 21,041/liter; RON 95-III gasoline is not more than VND 21,935/liter; diesel oil is not more than VND 19,707/liter; kerosene is not more than VND 20,331/liter; mazut oil is not more than VND 15,815/kg.
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