Oil prices soar amid fears of Israeli retaliation against Iran

Gasoline prices today, October 22, WTI oil price decreased slightly by less than 10 cents, Brent oil price "anchored" at 74.29 USD/barrel.

Gasoline prices today, October 22, WTI oil price decreased slightly by less than 10 cents, Brent oil price 'anchored' at 74.29 USD/barrel. (Source: Oilprice)

At the end of the first trading session of the week (October 21), oil prices increased by nearly 2%, recovering some of the "losses" of last week. Oil prices increased in the context of the continuous fighting in the Middle East and the possibility of Israel retaliating against Iran, causing the market to worry about supply disruptions from this region.

Brent crude rose $1.23, or 1.68 percent, to $74.29 a barrel. WTI crude rose $1.34, or 1.94 percent, to $70.56 a barrel.

Last week, Brent crude fell more than 7% and WTI crude fell about 8%, the biggest weekly declines for the two oil benchmarks since September 2, as slowing economic growth in China and falling risk premiums in the Middle East weighed on prices.

According to Reuters , on October 21, Israeli forces surrounded hospitals and shelters in the northern Gaza Strip, and bombed branches of Al Qard Al Hassan - a financial institution linked to Hezbollah in Lebanon.

Also according to Reuters , US Secretary of State Antony Blinken will continue to push for a ceasefire when he travels to the Middle East today to seek to start negotiations to end the conflict in Gaza and "de-escalate" the risk of conflict spreading to Lebanon. US special envoy Amos Hochstein also held talks with Lebanese officials in Beirut on the conditions of a ceasefire between Israel and Hezbollah.

Oil prices have bounced as fighting continues in the Middle East, said Dennis Kissler, senior vice president of trading at BOK Financial.

China's oil demand next year is expected to remain weak despite recent stimulus measures from Beijing due to slowing growth and the electrification of transport, the head of the International Energy Agency said on October 21.

Regarding US interest rates, Minneapolis Federal Reserve Bank President Neel Kashkari reiterated expectations for “modest” rate cuts in the coming quarters, despite the sharp weakening of the labor market.

Lower interest rates would cut borrowing costs, thereby boosting economic activity and increasing demand for oil.

U.S. crude inventories likely rose by about 100,000 barrels last week, while distillate and gasoline stocks fell, a preliminary Reuters poll showed.

Domestic retail prices of gasoline on October 22 are as follows:

E5 RON 92 gasoline is not more than 19,846 VND/liter.

RON 95-III gasoline is not more than 21,061 VND/liter.

Diesel oil not more than 18,500 VND/liter.

Kerosene not more than 18,790 VND/liter.

Fuel oil not exceeding 15,911 VND/kg.

The domestic retail price of gasoline and oil will be adjusted by the Ministry of Finance and the Ministry of Industry and Trade in the price adjustment session on the afternoon of October 17. Although the world price of gasoline and oil increased last week, since the beginning of the new week, the price has decreased for 3 consecutive sessions, so it is likely that the domestic price of gasoline and oil will decrease. The forecast is that the price of gasoline will decrease by 100-200 VND/liter, and the price of oil will decrease more.

In the most recent price adjustment period, the price of E5 RON 92 gasoline increased by VND996/liter, RON 95-III gasoline increased by VND1,258/liter, diesel increased by VND1,099/liter, kerosene increased by VND1,139/liter, and fuel oil increased by VND908/kg.

Source: https://baoquocte.vn/gia-xang-dau-hom-nay-2210-lo-ngai-israel-tra-dua-iran-gia-dau-leo-doc-290955.html