Brent oil up, WTI oil down

Today's oil prices, January 16, fluctuated in opposite directions, Brent oil increased by 0.71% while US WTI oil decreased slightly by 0.28%.

Giá xăng dầu hôm nay 16/1: Dầu Brent tăng, dầu WTI giảm

Oil prices today, January 16, fluctuated in opposite directions, Brent oil increased by 0.71% while US WTI oil decreased slightly by 0.28%. (Source: Reuters)

Oil prices ended the first trading session of the week down less than 20 cents as the limited impact of the Middle East conflict on crude production prompted profit-taking.

Brent crude futures fell 14 cents, or about 0.2%, to $78.15 a barrel. There was no deal for U.S. West Texas Intermediate (WTI) due to the Martin Luther King Jr. Day holiday, but WTI fell 18 cents, or about 0.3%, to $72.50 a barrel. Both benchmarks were down more than $1 earlier in the session.

According to Reuters , last Friday, some tanker owners avoided the Red Sea and many tankers changed course after the US and UK launched strikes on Houthi targets in Yemen.

The conflict has also blocked at least four liquefied natural gas tankers from moving in the area.

Tamas Varga of oil broker PVM said the perception that oil supplies are not being negatively affected is causing speculators to take profits. Oil prices are also being affected by the strengthening US dollar, Varga said.

On January 15, the chief negotiator for Yemen’s Houthi forces warned that attacks on ships headed to Israel would continue. Meanwhile, on social network X (formerly Twitter), the US military said on January 15 that the Houthi forces fired an anti-ship ballistic missile, disrupting the movement of a US-owned and operated container ship flying the flag of the Marshall Islands.

So far, there have been no oil supply losses, but the shipping disruptions are indirectly tightening the market by keeping 35 million barrels of oil at sea as shippers take longer journeys to avoid the Red Sea, according to Citi analysts.

In Libya, protesters against corruption have threatened to shut down two more oil facilities after shutting down the 300,000-barrel-per-day Sharara field on January 7.

In addition, some oil production in the United States and Canada was forced to halt as the two countries faced cold weather. The North Dakota Pipeline Authority estimated that North Dakota's oil production was down 400,000-425,000 barrels per day due to the extreme cold and related operational issues.

“The cold weather is affecting production, but prices seem to be falling on the perception that this cold snap will soon end,” said Phil Flynn, an analyst at Price Futures Group in Chicago.

In another development, European Central Bank (ECB) policymaker Joachim Nagel warned it was too early to discuss cutting interest rates while inflation remained too high.

Money markets are now pricing in a cut in the ECB's deposit rate this year of nearly 150 basis points, possibly starting in April.

Domestic retail prices of gasoline on January 16 are as follows:

E5 RON 92 gasoline is not more than 21,041 VND/liter.

RON 95-III gasoline is not more than 21,935 VND/liter.

Diesel oil not more than 19,707 VND/liter.

Kerosene not more than 20,331 VND/liter.

Fuel oil not exceeding 15,815 VND/kg.

The above domestic retail prices of gasoline and oil were adjusted up slightly in the price management session of the Ministry of Finance - Industry and Trade on the afternoon of January 11. Kerosene price increased the most, 374 VND/liter; RON 95-III gasoline price increased the least, 19 VND/liter.

In this operating period, the joint ministries set aside the Price Stabilization Fund for fuel oil at 300 VND/kg, did not set aside the Price Stabilization Fund for gasoline, diesel and kerosene, and did not use the Price Stabilization Fund for all products.

(synthetic)

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