Last week, world oil prices fell sharply by nearly 7%. Photo: MXV
In the first trading session of the week (March 31), world crude oil prices increased sharply after US President Donald Trump announced that he would take stronger action against two of the world's major oil suppliers, Russia and Iran.
Green covered all 5 energy products, in which both oil products were at their highest level since the beginning of March. Of which, Brent oil price increased by 1.51% to 74.74 USD/barrel; WTI oil price increased by 3.06% to 71.48 USD/barrel. This is the strongest increase of WTI oil price since the beginning of this year.
However, on the first trading day of April, oil prices cooled down after a series of "hot" increases since the trading session on March 19. The reason is that previous supply concerns were eased thanks to the OPEC+ production increase plan, which officially took effect from April 1, while the market faced new pressure from the prospect of weakening global oil demand.
Brent crude for June delivery fell 0.37% to $74.49 a barrel, while WTI crude fell 0.39% to $71.2 a barrel.
On April 3, pressure was put on the energy market when 4/5 commodities simultaneously fell sharply. Of which, Brent and WTI oil prices lost 6.42% and 6.64% to 70.14 USD/barrel and 66.95 USD/barrel, respectively. This is the deepest decline in Brent oil prices since August 1, 2022, and for WTI oil prices since July 11, 2022.
Oil prices plunged after the US announced reciprocal tariffs on more than 180 countries and territories. This policy was considered worse than previous predictions in the market.
Escalating trade tensions have raised market concerns about the prospect of a serious decline in global oil demand in the coming time.
In addition, OPEC+ unexpectedly increased oil production in May. The initial plan called for an increase of 135,000 barrels per day. However, after an online meeting between representatives of eight countries on April 2, OPEC+ gave a new figure of up to 411,000 barrels per day.
According to OPEC+, the sharp increase in production is due to “a solid foundation and positive market outlook” and “the increase in production could be paused or reversed depending on changing market conditions.”
OPEC+'s plan to sharply increase production in May, along with the planned increase in April, has somewhat eased concerns about oil supply shortages due to US sanctions targeting crude exports from Iran and Venezuela.
However, global trade tensions remain a major risk factor weighing on the energy market in the coming time.
Source: https://hanoimoi.vn/gia-dau-the-gioi-giam-manh-trong-tuan-qua-697983.html
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