Crude oil edged up after eight straight weeks of declines

At 6:00 a.m. on December 17, Brent oil price was trading at 76.95 USD/barrel, up 0.34 USD/barrel, equivalent to 0.44%, WTI oil price was trading at 71.79 USD/barrel, up 0.21 USD/barrel, equivalent to 0.29% compared to early this morning.

This week is the first week that oil prices have recorded an increase after 7 consecutive weeks of price declines.

The rise in oil prices was largely supported by a weak US dollar, and the International Energy Agency (IEA) raising its forecast for oil demand in 2024.

World crude oil prices increased slightly after 8 consecutive weeks of decline. (Illustration photo).

The US consumer price index (CPI) unexpectedly rose 0.1% in November as falling gasoline prices reinforced views that the Federal Reserve is unlikely to cut interest rates early next year. Core CPI rose 0.3%.

According to the American Petroleum Institute, US crude oil inventories fell by 2.349 million barrels in the week ending December 8; gasoline inventories rose by 5.8 million barrels; and distillate inventories rose by 300,000 barrels. Meanwhile, the US Energy Information Administration (EIA) said US crude oil inventories fell by 4.3 million barrels, more than expected, due to lower imports.

Falling US inventories and concerns about the Middle East security situation that could affect oil supplies from the region following attacks on oil tankers in the Red Sea pushed oil prices up about 1% in the third trading session of the week, while extending the increase by more than 3% into the fourth trading session of the week.

Notably, in the 4th trading session of the week, the two main factors supporting the upward momentum of oil prices were the weakening of the USD and the IEA's increase in oil demand forecast for next year.

The dollar slid to a four-month low of 101.76 after the US Federal Reserve said interest rate hikes may be over and borrowing costs will fall in 2024.

Forecasting world oil consumption to increase by 1.1 million barrels per day, up 130,000 barrels per day from its previous forecast, the IEA said the increase was due to an improved US outlook and lower oil prices.

The IEA's forecast is less than half that of OPEC's forecast a day earlier. OPEC kept its 2024 oil demand growth forecast at 2.25 million barrels per day.

A maximum drop of 15 cents in Brent and WTI crude oil on Thursday was not enough to help oil prices extend their record seven-week losing streak.

For the week, Brent rose 71 cents and WTI rose 20 cents. The modest gains were enough for both benchmarks to post their first weekly gain, snapping a seven-week losing streak.

Domestic gasoline prices

From December 14, the price of E5 RON92 gasoline decreased by 778 VND/liter, not higher than 20,512 VND/liter; the price of RON95 gasoline decreased by 917 VND/liter, not higher than 21,405 VND/liter.

Diesel price decreased by 711 VND/liter, not higher than 19,010 VND/liter; kerosene decreased by 958 VND/liter, not higher than 19,964 VND/liter and fuel oil decreased by 549 VND/kg, not higher than 14,978 VND/kg.

In this period, the management agency did not set aside or use the price stabilization fund for most commodities. Only set aside the fund for fuel oil at 300 VND/kg (no allocation in the previous period).

Since the beginning of the year, gasoline prices have undergone 35 adjustments, including 19 increases, 13 decreases, and 3 unchanged.

PHAM DUY

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