Economic data will influence oil prices this week

Accordingly, Brent oil price decreased by 0.43 USD, equivalent to 0.49%, to 87.63 USD/barrel. Similarly, US WTI oil price decreased by 0.21 USD, equivalent to 0.24%, to 83.45 USD/barrel.

Brent oil price is trading at 87.63 USD/barrel. Photo: screenshot

Last week, oil prices fluctuated between trading sessions due to tensions in the Middle East, a sharp drop in US crude oil inventories and economic data showing that the US Federal Reserve (Fed) is likely to maintain interest rates at current high levels.

The US personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge, rose 0.3% in March. The benchmark US interest rate is currently around 5.25-5.5% - the highest in 22 years. The Fed has raised interest rates 11 times since March 2022 to curb inflation.

Meanwhile, in the 20 countries that use the euro, annual consumer price inflation has slowed steadily since the start of the year and stood at 2.4% last month. With this development, the market predicts that the European Central Bank (ECB) will likely start cutting interest rates in June, three months ahead of the Fed.

Geopolitical tensions in the Middle East will continue to be a factor in oil price volatility in the coming days. Israel is carrying out airstrikes on the city of Rafah in southern Gaza, despite warnings from its allies that such an action would exacerbate the humanitarian crisis in Gaza.

Crude oil futures have shed a $2.50 geopolitical risk premium since last week as tensions between Israel and Iran eased, according to analysts at Piper Sandler. Oil prices are flat now, but downside risks appear limited, Piper analysts said.

This week, markets will be watching inflation and GDP releases from the eurozone, Germany, the US Institute for Supply Management report, the US monthly jobs report and the latest monetary policy decision from the Federal Open Market Committee.

The retail price of gasoline in the country on April 29 is as follows: E5 RON 92 gasoline is not more than VND 23,919/liter; RON 95-III gasoline is not more than VND 24,915/liter; diesel oil is not more than VND 20,716/liter; kerosene is not more than VND 20,686/liter; fuel oil is not more than VND 17,408/kg.

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