Oil prices fluctuate after investors take profits

Specifically, Brent oil price increased by 0.4 USD, equivalent to 0.54%, trading at 78.69 USD/barrel. Meanwhile, US WTI oil price decreased by 0.31 USD, equivalent to 0.42%, trading at 72.44 USD/barrel.

Some oil tanker owners have avoided the Red Sea and changed course after the US and UK launched strikes against Houthi targets in Yemen.

There has been no loss of oil supply so far, according to Citi analysts.

However, the shipping disruptions are indirectly tightening the market by keeping 35 million barrels of oil at sea as shippers reroute oil around South Africa, pushing up freight rates for the commodities due to the longer route.

Brent oil price is trading at 78.69 USD/barrel. Photo: screenshot

Unaffected oil supplies are prompting profit-taking by speculators, said Tamas Varga of oil broker PVM.

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 activities in the US and Canada were forced to suspend as the two countries faced cold weather.

The North Dakota Pipeline Authority estimates that North Dakota oil production has dropped by 400,000-425,000 barrels per day due to extreme cold weather and related operational issues.

Citibank (USA) has also just lowered its forecast for Brent oil prices this year and next year due to concerns about oversupply.

Accordingly, Citibank lowered its Brent oil price forecast for 2024 to $74/barrel and its Brent oil price forecast for 2025 to $60/barrel.

Citibank also noted that recent developments in the Red Sea region could escalate tensions in the Middle East, potentially causing Brent oil prices to increase in the short term.

The retail price of domestic gasoline on January 16 is as follows: E5 RON 92 gasoline is not more than VND 21,041/liter; RON 95-III gasoline is not more than VND 21,935/liter; diesel oil is not more than VND 19,707/liter; kerosene is not more than VND 20,331/liter; mazut oil is not more than VND 15,815/kg.

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