World oil prices fell sharply
Data on Oilprice at 6:00 a.m. on February 4, 2024 (Vietnam time), WTI oil price was at 72.41 USD/barrel, down 2.09% (equivalent to a decrease of 1.54 USD/barrel). Similarly, Brent oil price was at 77.67 USD/barrel, down 1.74% (equivalent to a decrease of 1.37 USD/barrel).
Oil prices ended the week in the red as growing optimism about a lasting ceasefire in the Israel-Hamas war cooled supply risks to prices.
World oil prices fell sharply at the end of the week. (Illustration photo: Reuters)
Multiple media reports said Israeli and Hamas leaders were considering a ceasefire that many expected would mark a 'de-escalation' in military tensions in the Middle East, which have been a major support for oil prices in recent months.
Attacks by Yemen’s Houthi group on ships in the Red Sea have disrupted shipping in the region. After U.S.-led forces recently struck back at the Houthis, the conflict has forced some shipping operators to stay away from the Suez Canal, pointing to the possibility of delays in oil deliveries in Europe and Asia.
Since the Houthis' main point of contention is the Israel-Hamas war, any de-escalation in the conflict is expected to ease tensions in the Red Sea, removing any disruption to oil supplies.
The US Dollar Index jumped on Friday after monthly US jobs data showed the economy created 353,000 jobs last month, up from an upwardly revised total of 333,000 in December and significantly higher than the expected 187,000 jobs.
The stronger US dollar makes oil, priced in US dollars, more expensive and less attractive to foreign buyers. The strong numbers follow the US Federal Reserve (FED) lowering expectations for an interest rate cut as early as 2024, at its meeting earlier this week.
Keeping interest rates high could further dampen economic activity, which is expected to hit crude demand in the world's largest consumer.
According to Reuters, US non-farm payrolls increased by 353,000 last month, exceeding economists' expectations of 180,000. Average hourly earnings increased by 0.6% in January, up from 0.4% in December 2023. The increase in US employment reduces the possibility of the Fed cutting interest rates soon, which could reduce demand for crude oil.
With 4 sessions of decline and only 1 session of increase, oil prices this week dropped by nearly 7%, ending the previous 2-week increase streak. Brent crude oil prices ended the week at 77.33 USD/barrel, WTI crude oil prices closed at 72.28 USD/barrel.
Domestic retail price of gasoline
Domestic retail gasoline prices on February 4, 2024 will be applied according to the adjustment session from 3:00 p.m. on February 1 by the Ministry of Finance - Ministry of Industry and Trade.
Domestic gasoline prices have increased four times in a row since the beginning of 2024. (Illustration: Cong Hieu)
Specifically, the price of E5 RON 92 gasoline increased to 22,913 VND/liter; RON 95 gasoline increased to 24,160 VND/liter.
Similarly, diesel price increased to 20,999 VND/liter; kerosene price increased to 20,923 VND/liter. Fuel oil price increased in this adjustment session, specifically, to 16,087 VND/kg.
According to the explanation of the Ministry of Industry and Trade, the above changes in domestic gasoline prices are due to the influence of factors such as: Tensions in the Middle East, increased crude oil reserves in the US, real estate crisis in China (the world's leading oil consuming country) raising concerns about oil demand... The above factors have caused world gasoline prices to fluctuate up and down in recent days.
Regarding the Petroleum Price Stabilization Fund (BOG) in this management period, the Ministry of Industry and Trade - Ministry of Finance decided: Set aside the BOG Fund for fuel oil, not set aside the BOG Fund for gasoline, diesel and kerosene; do not use the BOG Fund for all petroleum products.
This is the fourth consecutive price increase of gasoline since the beginning of the year.
PHAM DUY
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