Oil prices rose to their highest level in two months.

Specifically, Brent crude oil prices rose $2.39, or 2.99%, to $82.29 per barrel. US WTI crude oil prices increased $2.27, or 3.02%, to $77.36 per barrel.

Brent crude oil is trading at this level. — Brent crude oil is trading at $82.29 per barrel. (Image: Screenshot)

According to Reuters, geopolitical tensions in the Middle East and shipping disruptions along the Red Sea corridor remain key drivers of rising oil prices.

A coalition of 24 nations led by the US and UK has launched new military actions against Houthi forces in Yemen, following attacks on ships transiting the Red Sea and disrupting global trade.

Fueling the surge in oil prices were figures from the U.S. Energy Information Agency (EIA) showing that U.S. crude oil inventories fell by 9.2 million barrels last week, more than four times the 2.2 million barrel decrease forecast by analysts.

In addition, Mr. Yawger stated that in the fourth quarter of 2023, the US GDP grew by 3.3%, much higher than the expected 2%. This is a positive indicator for the US economy and supports oil prices.

Oil prices also received support from expectations of a recovering Chinese economy after the country's central bank announced it would cut the amount of cash banks hold as reserves starting February 5th.

John Kilduff, a partner at Again Capital LLC, said the market has been anticipating economic stimulus from China for the past few months, and that bank reserve cuts could boost oil demand. However, the prospect of maintaining high interest rates remains in many parts of the world.

On January 25th, the European Central Bank maintained its record-high benchmark interest rate of 4%.

Domestically, yesterday afternoon, retail fuel prices were adjusted in the inter-ministerial price adjustment by the Ministry of Finance and the Ministry of Industry and Trade. Specifically, RON 95-III gasoline increased by 925 VND/liter, E5 RON 92 gasoline increased by 753 VND/liter, and diesel increased by 182 VND/liter. Notably, mazut fuel was adjusted down by 14 VND/kg.

In this price adjustment period, the inter-ministerial committee allocated 300 VND/kg to the Price Stabilization Fund for fuel oil; did not allocate funds for gasoline, diesel, and kerosene; and did not use the Price Stabilization Fund for any petroleum products.

Domestic retail fuel prices on January 26th are as follows: E5 RON 92 gasoline not exceeding 22,171 VND/liter; RON 95-III gasoline not exceeding 23,407 VND/liter; diesel fuel not exceeding 20,376 VND/liter; kerosene not exceeding 20,544 VND/liter; and fuel oil not exceeding 15,494 VND/kg.

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