Oil prices cool down after 6 consecutive increases

Last week, oil prices cooled down after 6 consecutive sessions of increase. Illustrative photo

In the first trading session of the week (March 24), except for natural gas, all four remaining fuel products increased in price.

Crude oil prices increased sharply in the first trading session of the week, Brent oil increased by 1.16% to 73 USD/barrel and WTI oil reached 69.11 USD/barrel, up 1.22%.

This is the highest price level for both commodities since early March. The price push comes from the US announcing on March 24 that it would impose a 25% tax on countries importing oil from Venezuela, starting April 2.

In addition, oil prices were also supported by the OPEC+ production cut plan, announced on March 20. According to Goldman Sachs' forecast, OPEC+ production growth will decrease by about 300,000 barrels of oil per day in the next 12 months.

As of March 26, world oil prices have increased for the 6th consecutive session. At the end of the trading session on March 26, all 5 commodities in the energy group increased in price. At the close, Brent oil prices increased for the 6th consecutive session, recording an increase of 1.05%, reaching 73.79 USD/barrel. At the same time, WTI oil prices also increased by 0.94%, reaching 69.65 USD/barrel.

World oil prices continued to increase after the US Energy Information Administration (EIA) released a report showing that US crude oil reserves had decreased much more than expected.

This is because refineries are increasing their operating capacity in preparation for the peak travel season in the US, which will take place over the next two months. This reinforces the forecast of a tight supply market in the short term, thereby creating upward pressure on prices.

According to experts' analysis, difficulties in commercializing crude oil exported from Venezuela could create a bottleneck, leading to a forced production shutdown with a reduction of up to 400,000 barrels per day, accounting for more than half of the oil exported from this South American country.

However, after 6 consecutive sessions of increase, the world oil market showed signs of cooling down on March 27. The rate of increase in oil prices gradually slowed down as investors became more cautious in assessing the impact of tariff policies on the US economy.

At the end of the trading day of the week, Brent oil price increased for the 7th session but only slightly increased by 0.33%, equivalent to 74.03 USD/barrel. Similarly, WTI oil price increased by 0.39% to 69.92 USD/barrel.

Currently, the market is still waiting for OPEC+'s plan to increase production in April and May to compensate for the supply shortage from Iran and Venezuela.

Reports from the EIA and the American Petroleum Institute show that commercial crude oil inventories are in a larger-than-expected deficit. Meanwhile, demand in the US is increasing.

In another development, the US announced that it will apply a 25% tax rate on automobile products imported into the US from April 3. This could push up vehicle prices in the US, indirectly reducing the demand for gasoline and oil in this country.

Source: https://hanoimoi.vn/gia-dau-ha-nhiet-sau-6-phien-tang-lien-tiep-697252.html