Oil prices rebound, surpassing the 80 USD/barrel mark

Oil prices increased by more than 2%. Illustration photo: Oil and Gas Group

Specifically, Brent oil price increased by 2 USD, equivalent to 2.5%, to 80.59 USD/barrel. US WTI oil price increased by 2.01 USD, to 75.57 USD/barrel.

Brent oil price is trading at 80.59 USD/barrel. Photo: screenshot

The US Department of Defense recently accused Iran of using a drone to attack a Liberian-flagged chemical tanker about 200 nautical miles off the coast of India. This escalated tensions in the region and increased risks to shipping routes.

However, despite concerns about the situation in the Middle East and the rerouting of ships by shipping companies, actual supplies have not been affected, according to Reuters.

On December 24, Maersk announced the restart of shipping routes through the Red Sea, while France's CMA CGM is increasing the number of ships passing through the Suez Canal.

Oil prices were also supported by expectations that the US Federal Reserve will cut interest rates next year. Lower interest rates reduce consumer borrowing costs, boosting economic growth and oil demand.

Traders are betting 86% that the US central bank will cut interest rates by at least 25 basis points by March 2024, up from just 21% in November, according to CME Group's FedWatch tool.

The slight fall in the dollar index also made dollar-priced oil cheaper for investors holding other currencies, boosting demand.

The International Energy Agency (IEA) forecasts global oil demand will increase by 1.1 million barrels per day next year. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) believes that demand will increase by 2.25 million barrels per day.

Regarding prices, Goldman Sachs Bank (USA) said that next year, the average price of Brent oil will reach 80-81 USD/barrel. Meanwhile, IEA predicted the average price of Brent oil next year will be at 82.57 USD/barrel.

Domestically, tomorrow afternoon (December 28), retail gasoline prices will be adjusted at the joint price management session of the Ministry of Finance - Industry and Trade. It is expected that gasoline prices will increase or decrease by about 100 VND/liter.

The retail price of domestic gasoline on December 27 is as follows: E5 RON 92 gasoline is not more than VND 21,199/liter; RON 95 gasoline is not more than VND 22,145/liter; diesel oil is not more than VND 19,524/liter; kerosene is not more than VND 20,494/liter; mazut oil is not more than VND 15,265/kg.

Source: https://laodong.vn/kinh-doanh/gia-dau-bat-tang-vuot-moc-80-usdthung-1284950.ldo