Oil prices surge, surpassing the $80 per barrel mark.

Specifically, Brent crude oil prices rose $2, or 2.5%, to $80.59 per barrel. US WTI crude oil prices increased $2.01 to $75.57 per barrel.

Brent crude oil is trading at this level. — Brent crude oil is trading at $80.59 per barrel. (Image: Screenshot)

Recently, the US Department of Defense accused Iran of using drones to attack a Liberian-flagged chemical tanker approximately 200 nautical miles off the coast of India. This has escalated tensions in the region and increased risks to shipping lanes.

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

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 (Fed) would cut interest rates next year. Lower interest rates reduce consumer borrowing costs, boosting economic growth and demand for oil.

According to CME Group's FedWatch tool, traders are betting with an 86% probability that the US central bank will cut interest rates by at least 25 basis points in March 2024, a sharp increase from the approximately 21% probability in November.

The slight decline in the USD index also makes oil, which is priced in USD, cheaper for investors holding other currencies, boosting demand.

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

Regarding prices, Goldman Sachs (USA) predicts that the average price of Brent crude oil next year will reach $80-81 per barrel. The IEA, meanwhile, forecasts an average Brent crude oil price of $82.57 per barrel next year.

Domestically, retail gasoline and diesel prices will be adjusted tomorrow afternoon (December 28th) as part of the inter-ministerial price adjustment by the Ministry of Finance and the Ministry of Industry and Trade. It is expected that gasoline and diesel prices will fluctuate by approximately 100 VND/liter.

The retail prices of petroleum products in Vietnam on December 27th are as follows: E5 RON 92 gasoline not exceeding 21,199 VND/liter; RON 95 gasoline not exceeding 22,145 VND/liter; diesel fuel not exceeding 19,524 VND/liter; kerosene not exceeding 20,494 VND/liter; and fuel oil not exceeding 15,265 VND/kg.

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