Good signal about inflation, oil price continues to increase today

World oil prices

At 6:30 a.m. on January 7, Brent oil was trading at $78.90 per barrel, while WTI oil was trading at $73.64 per barrel, up $1.76 per barrel.

Oil prices rose after minutes of the US Federal Reserve meeting showed inflation was under control.

Thus, the first week of 2024 ended with both Brent and WTI recording gains.

Specifically, overall during the week, Brent oil increased by 1.65 USD compared to last week, WTI oil also increased by 1.99 USD.

This week's rise in oil prices was supported by a series of factors, including a decline in US oil reserves, supply disruptions from Libya, escalating tensions in the Middle East and a week-long visit by the US Secretary of State.

This week, oil trades for four days instead of five because markets are closed on the first day of the new year.

Oil prices recorded the first weekly increase of 2024. (Illustration photo: Energy Now)

Oil prices fell nearly 2% in the first trading session of the week (2/1) due to weakening expectations of interest rate cuts, concerns that tensions in the Red Sea will disrupt supply, and a stronger US dollar. Notably, at one point in the session, oil prices rose about 2 USD.

The possibility of losing more than 300,000 barrels of oil per day due to production disruptions at Libya's largest oil field - Sharara - due to protests there and El-Feel oil field, along with increasing tensions in the Middle East, pushed oil prices up about 3% in the second trading session of the week.

Prices were also supported as the market digested minutes from the US Federal Reserve's December meeting showing the Fed believes inflation is under control and is likely to keep interest rates unchanged in January.

Despite a larger-than-expected decline in U.S. oil inventories, a surge in gasoline and distillate inventories sent oil prices sharply lower on Tuesday, ending the session down less than 1%.

According to the US Energy Information Administration, US gasoline inventories in the week ending December 29, 2023 increased by a shocking 10.9 million barrels; distillate inventories increased by 10.1 million barrels while crude oil inventories decreased by 5.5 million barrels.

News that US Secretary of State Antony Blinken began a week-long visit to the Middle East in an effort to contain tensions in the region sent oil prices into reverse on the fourth and final trading session of the week. Oil prices rose more than $1, completely recouping losses from the previous session.

At the end of the week, oil prices were at $78.69/barrel, Brent crude increased by $1.65 compared to the previous week. WTI crude also recorded a weekly increase with an increase of $1.99.

Thus, oil prices this week increased and decreased alternately in trading sessions and established the first increasing week in 2024.

Domestic gasoline prices

From 3:00 p.m. on January 4, the price of E5 RON92 gasoline decreased by VND180/liter, to VND21,006/liter. The price of RON95 gasoline decreased by VND232/liter, not higher than VND21,916/liter.

Diesel price decreased by 420 VND/liter, not higher than 19,368 VND/liter. Kerosene price decreased by 500 VND/liter, not higher than 19,957 VND/liter. Fuel oil price decreased by 190 VND/kg, not higher than 15,495 VND/kg.

In this management period, in response to the developments in world oil prices and current regulations, the Ministry of Industry and Trade - Ministry of Finance decided not to set up and use the price stabilization fund for all gasoline, diesel and kerosene products, and only set up a price stabilization fund for fuel oil at the rate of 300 VND/kg.

According to the Ministry of Industry and Trade, the world oil market in this operating period (from December 27, 2023 to January 4, 2024) is affected by factors such as: disruptions at Libya's leading oil field increase concerns about tensions in the Middle East, which could disrupt global oil supplies; attacks on ships in the Red Sea have not stopped; OPEC+ countries are expected to consider implementing oil production cuts...

Since the beginning of the year, gasoline prices have undergone 39 adjustments, including 21 increases, 15 decreases, and 3 unchanged prices.

PHAM DUY

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