Oil prices surged in the final trading session of the year.

According to MXV, the energy sector on December 29th also witnessed overwhelming buying pressure, with 4 out of 5 commodities simultaneously increasing in price. Specifically, Brent crude oil rose by more than 1.8% to $61.7 per barrel; WTI crude oil also increased by nearly 2.4% to $58 per barrel.

The strong rebound in oil prices during the session was mainly due to a combination of technical factors, year-end cash flow, and cautious sentiment regarding geopolitical risks, amidst persistently low market liquidity.

Following the sharp declines in previous sessions, when Brent crude oil prices retreated close to the crucial support level around $60 per barrel, many investment funds and traders proactively closed their short positions. This closing of short positions, occurring under conditions of thin liquidity, widened the price range, thereby amplifying the upward momentum within a single trading session.

Against this technical backdrop, geopolitical factors continue to act as psychological catalysts, causing the market to reassess risk costs. While discussions between Ukrainian President Volodymyr Zelenskiy and US President Donald Trump regarding the prospect of establishing a peace framework for the Russia-Ukraine conflict have shown progress, they have not yielded any concrete breakthroughs. Meanwhile, Ukraine continues to expand its attacks on Russian oil and gas infrastructure and logistics routes, leaving concerns about potential supply disruptions unaddressed.

In addition, news of Saudi Arabian airstrikes in Yemen, as well as US military operations targeting Islamic State (IS) targets in Nigeria last week, has raised concerns about the risk of widespread instability in the Middle East and other key energy-producing regions. While no direct impact on supply has been observed, the oil market remains sensitive to tensions in areas that could affect strategic shipping lanes such as the Red Sea and the Persian Gulf.

Conversely, the outlook for demand from China continues to be a crucial support for market sentiment. Data from analytics firm Kpler shows that China's crude oil imports this month are expected to increase by about 10% compared to last month, reaching a record 12.2 million barrels per day as the country ramps up its restocking activities. With China accounting for about a quarter of total global seaborne crude oil imports, simply maintaining a steady pace of purchases would be enough to alleviate short-term oversupply pressure.

Furthermore, the continued postponement by the U.S. Energy Information Agency (EIA) of its crude oil inventory report, which was scheduled for December 29th, has left the market lacking clear directional guidance. In this context, oil prices have become more sensitive to supporting information, especially given the cautious sentiment surrounding year-end trading.

Source: https://vtv.vn/gia-dau-bat-tang-manh-trong-phien-cuoi-nam-100251230154630809.htm