World oil prices extended the upward trend of the last trading session of last week. Domestic oil prices may reverse and increase.
World oil prices
At the end of the first trading session of the week (December 30) and also one of the last two trading sessions of 2024, oil prices increased slightly as investors bet on the possibility that temperatures in the US and across Europe will decrease in the coming weeks to boost diesel demand.
Brent crude for February delivery rose 22 cents, or 0.3 percent, to $74.39 a barrel. The March contract rose 20 cents to $73.99 a barrel.
West Texas Intermediate (WTI) crude futures rose 39 cents, or 0.6%, to $70.99 a barrel. U.S. ultra-low sulfur diesel rose 2.5% to $2.30 a gallon, the highest since Nov. 5.
Both oil benchmarks gave up early session losses.
Diesel is leading the energy sector, fuel distributor TACenergy said in a trading room note. Concerns about colder weather in the coming weeks are boosting diesel prices, which are often used as a substitute for natural gas in heating systems.
Meteorologists at LSEG predict that in January 2025, temperatures in Europe will be colder.
US natural gas futures jumped 17% to their highest since January 2023, boosted by weather forecasts and rising export demand.
Back to oil prices, the commodity could continue to be supported by a decline in US crude inventories. A preliminary Reuters poll showed that US crude inventories will have fallen by about 3 million barrels last week.
Last week, both Brent and WTI rose about 1.4% on a larger-than-expected drop in U.S. oil inventories as refineries ramped up operations and the holiday season boosted fuel demand.
Investors are also awaiting China's factory purchasing managers' index (PMI) survey, due for release today, and the US manufacturing PMI, due on January 3, to gauge the economic health of the world's top oil consuming nations.
China's weakening economy could cause an oversupply in the oil market next year, according to analyst Alex Hodes at brokerage StoneX.
Last week, news that the Chinese government had agreed to issue a record 3 trillion yuan ($411 billion) in special treasury bonds by 2025 to revive economic growth supported oil prices.
Oil market participants are also speculating that US President-elect Donald Trump will cut Iran’s crude oil exports to below 500,000 barrels per day through sanctions, which would take more than 1 million barrels per day of Iranian crude off the global market.
Domestic gasoline prices
Domestic retail prices of gasoline on December 31 are as follows:
E5 RON 92 gasoline is not more than 19,817 VND/liter. RON 95-III gasoline is not more than 20,547 VND/liter. Diesel oil not more than 18,630 VND/liter. Kerosene not more than 18,708 VND/liter. Fuel oil not exceeding 15,970 VND/kg. |
The above domestic retail prices of gasoline and oil will be adjusted by the Ministry of Finance and the Ministry of Industry and Trade in the price management session on the afternoon of January 2. Due to the increase in world gasoline and oil prices last week, domestic gasoline and oil prices are likely to increase as well. However, prices may reverse if world gasoline and oil prices decrease sharply in the coming trading sessions.
In the most recent adjustment, the price of E5 RON 92 gasoline decreased by 427 VND/liter, RON 95-III gasoline decreased by 457 VND/liter, diesel decreased by 103 VND/liter, kerosene decreased by 260 VND/liter, and fuel oil increased by 67 VND/kg.
Source: https://baolangson.vn/gia-xang-dau-hom-nay-31-12-tiep-tuc-tang-5033623.html
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