Oil prices edged up in early trading on October 21 after falling more than 7% last week as concerns about demand in China and potential supply disruptions in the Middle East eased.
Accordingly, the price of Brent crude oil for delivery increased by 8 cents (equivalent to 0.11%) to 73.14 USD/barrel at 8:20 a.m. (Vietnam time). The price of US light sweet crude oil (WTI) also increased by 10 cents (0.14%) to 69.32 USD/barrel.
Last week, Brent and WTI fell 7% and 8%, respectively, the biggest weekly declines for these benchmarks since September 2, largely due to slowing economic growth in China and lower risk premiums in the Middle East due to the possibility of easing tensions.
US President Joe Biden said on October 18 that there was a chance for Israel and Iran to end their conflict for a while. However, the conflict in the Middle East escalated over the weekend following Israel's announcement on October 20 that it was preparing to carry out military action targeting sites in the Lebanese capital Beirut.
As for the Chinese economy, on the morning of October 21, the government cut its benchmark lending rate as expected. This is part of a stimulus package to revive the economy.
Data released last Friday showed China's economy grew at its slowest pace since early 2023 in the third quarter, adding to concerns about oil demand.
On the supply side, the latest report from energy services firm Baker Hughes said U.S. energy companies reduced the number of oil and natural gas rigs operating for the fourth time in five weeks. As of last week, the U.S. rig count fell by one to 585.
According to VNA
Source: https://doanhnghiepvn.vn/kinh-te/gia-dau-phuc-hoi-nhe-sau-mot-tuan-giam-sau/20241021014606888
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