Russia-Ukraine conflict escalates, oil prices soar

Oil prices today, November 22. At the end of the trading session on November 21, oil prices increased by nearly 2% as the Russia-Ukraine conflict escalated rapidly, causing the market to worry about crude oil supply.

Oil prices today, November 22, increased nearly 2% as the Russia-Ukraine conflict escalated rapidly, causing the market to worry about crude oil supply. (Source: Oilprice)

Brent crude rose $1.42, or 1.95 percent, to $74.23 a barrel. WTI crude rose $1.35, or 2 percent, to $70.10 a barrel.

Russian President Vladimir Putin said on November 21 that Russia had launched a hypersonic intermediate-range ballistic missile at a Ukrainian military facility and warned the West that Moscow could strike the military facilities of any country that had weapons against Russia. According to President Putin, the West is escalating the conflict in Ukraine by allowing Kiev to attack Russia with long-range missiles and the Russia-Ukraine conflict is becoming a global conflict.

Earlier in the week, Ukraine fired US and British missiles at targets inside Russian territory despite warnings from Moscow that it would see it as a serious escalation.

Market attention has now turned to growing concerns about the escalation of the conflict in Ukraine, commented Ole Hvalbye, commodities analyst at SEB.

Russia is the world's second-largest crude oil exporter after Saudi Arabia, so a major disruption there could impact global supplies.

For oil, the risk lies in Ukraine targeting Russia's energy infrastructure, while another risk is uncertainty about how Russia will respond to these attacks, ING analysts said.

Limiting gains during the session was a rise in U.S. gasoline and crude inventories that exceeded analysts' expectations, while distillate inventories fell more than expected.

Also on November 21, China announced measures to boost trade, including supporting energy imports, amid concerns about US President-elect Donald Trump's threat of higher tariffs.

Regarding supply, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will likely decide to postpone increasing production due to weak global oil demand when it meets on December 1.

Meanwhile, Chicago Federal Reserve Bank President Austan Goolsbee reaffirmed his support for further rate cuts but said the pace of rate cuts could slow.

Slower-than-expected rate cuts have kept borrowing costs high, which could slow economic activity and reduce demand for oil.

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

E5 RON 92 gasoline is not more than 19,343 VND/liter.

RON 95-III gasoline is not more than 20,528 VND/liter.

Diesel oil not more than 18,509 VND/liter.

Kerosene not more than 18,921 VND/liter.

Fuel oil not exceeding 16,014 VND/kg.

The above domestic retail prices of gasoline and oil were adjusted by the Ministry of Finance - Industry and Trade in the price adjustment session on the afternoon of November 21. Because the world oil price "plummeted" last week but recovered slightly this week, the domestic oil price also continued to decrease with a slight decrease. The price of E5 RON 92 gasoline decreased the most, by 109 VND/liter. RON 95-III gasoline decreased by 79 VND/liter, diesel oil decreased by 64 VND/liter, kerosene decreased by 67 VND/liter. Only mazut oil increased by 5 VND/kg.

In this management 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-2211-Russian-Ukraine-conflict-rises-more-and ...