Oil prices today, December 17, ended the first trading session of the week, oil prices slipped from multi-week highs due to weak consumer spending in China - the world's largest oil importer - and investors pausing purchases ahead of the US Federal Reserve's interest rate decision.
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| Oil prices today, December 17, at the end of the first trading session of the week, oil prices have slipped from their highest level in many weeks. (Source: Oilprice) |
Brent crude fell 58 cents, or 0.8%, to $73.91 a barrel. WTI crude fell 58 cents, or 0.8%, to $70.71 a barrel.
Oil prices were supported last week by expectations that supplies will tighten as additional sanctions on crude producers Russia and Iran are imposed, while possible interest rate cuts in the US and Europe will boost demand.
Last week’s events were priced in, and there will be fewer commodities to support oil prices this week, said Jim Ritterbusch, an analyst at Ritterbusch and Associates, a Florida consulting firm.
China's industrial output rose 5.4% in November from a year earlier, up from 5.3% in October and beating expectations of a 5.3% increase in a Reuters poll, Reuters reported, citing data from the National Bureau of Statistics of China.
However, retail sales, a gauge of consumer spending, rose 3%, the slowest in three months and well below the 4.8% gain in October and analysts’ forecasts for a 4.6% increase. The weaker-than-expected retail sales continue to pressure Beijing to step up stimulus for a fragile economy facing U.S. trade tariffs.
This is a very bearish scenario with little hope of growth in demand for crude oil, said Bob Yawger, director of energy futures at Mizuho in New York.
China's demand outlook has forced the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to postpone plans to increase production until the end of the first quarter of 2025.
Without a significant change in personal spending behavior, China's economic fortunes will be hampered, said analyst John Evans at oil brokerage PVM.
Traders also took profits during the session as they awaited the U.S. central bank’s interest rate decision. The slight profit-taking was expected after prices rose more than 6% last week, according to IG market analyst Tony Sycamore. Sycamore noted that many banks and funds are likely to close their books due to reduced demand for positions during the holiday season.
Meanwhile, the Fed is expected to cut interest rates by 0.25 percentage points at its meeting ending on December 18.
Oil prices continued to come under pressure from the US dollar as the greenback continued to hover near a three-week high against other major currencies.
Domestic retail prices of gasoline on December 17 are as follows:
E5 RON 92 gasoline is not more than 19,861 VND/liter. RON 95-III gasoline is not more than 20,596 VND/liter. Diesel oil not more than 18,255 VND/liter. Kerosene not more than 18,566 VND/liter. Fuel oil not exceeding 15,574 VND/kg. |
The above domestic retail prices of gasoline and oil were adjusted by the Ministry of Finance - Industry and Trade in the price management session on the afternoon of December 12. All gasoline and oil products decreased, except for RON 95-III gasoline which increased by 33 VND/liter. The price of E5 RON 92 gasoline decreased by 3 VND/liter, diesel oil decreased by 127 VND/liter, kerosene decreased by 251 VND/liter, and fuel oil decreased by 551 VND/kg.
In this operating period, the joint ministries did not set aside or use the Petroleum Price Stabilization Fund for E5 RON 92 gasoline, RON 95 gasoline, diesel oil, kerosene, and fuel oil.
Source: https://baoquocte.vn/gasoline-price-today-1712-slipped-from-highest-level-due-to-china-state-low-consumption-spending-297689.html
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