China's new economic stimulus package is disappointing, and oil prices have fallen sharply.

Today, November 12th, marks the end of the first trading session of the week (November 11th). Oil prices fell by more than 2% after China's latest economic stimulus plan disappointed investors seeking demand growth in the world's second-largest oil consumer, amid expectations of increased supply in 2025.

Today, November 12th, oil prices fell by more than 2% after China's latest economic stimulus plan disappointed investors. (Source: Oilprice)

Brent crude oil prices fell $2.04, or 2.76%, to $71.83 per barrel. WTI crude oil prices fell $2.34, or 3.32%, to $68.04 per barrel.

Both of the aforementioned benchmark oil prices fell by more than 2% in the final trading session of last week.

Phil Flynn, a senior analyst at Price Futures Group, said that Donald Trump's victory in the US presidential election could continue to impact the market.

The US dollar index, a measure of the dollar's value against foreign currencies, has edged higher from its peak reached just after last week's US presidential election amid market anticipation of greater clarity on future US policy. A stronger dollar makes dollar-denominated commodities like oil more expensive for holders of other currencies and tends to put downward pressure on prices.

In China, the consumer price index rose 0.3% in October, lower than the 0.4% increase in September and the lowest level in four months, while producer price deflation worsened, even as Beijing doubled its stimulus measures to support the sluggish economy (announcing a relief package worth 10 trillion yuan, equivalent to $1.4 trillion).

Amid declining demand from China, crude oil supplies from countries outside the Organization of Petroleum Exporting Countries (OPEC) are expected to increase by 1.4 million barrels per day next year and by 900,000 barrels per day in 2026.

According to Bank of America, significant growth outside OPEC next year and China's unconvincing stimulus package could lead to increased inventories even without increased production from OPEC and its allies (OPEC+).

In late September, OPEC+ announced it would increase supply by 180,000 barrels per day in December. However, earlier this month, OPEC+ decided to maintain supply cuts until January 2025.

The U.S. Offshore Production Authority said the country has yet to restore 25.7% of its crude oil production and 13% of its natural gas production in the U.S. Gulf Coast region, even though Hurricane Rafael has dissipated.

The retail prices of gasoline and diesel in Vietnam on November 12th are as follows:

E5 RON 92 gasoline should not exceed 19,744 VND/liter.

RON 95-III gasoline should not exceed 20,854 VND/liter.

Diesel fuel prices should not exceed 18,917 VND/liter.

Kerosene should not exceed 19,294 VND/liter.

Fuel oil price should not exceed 16,394 VND/kg.

The aforementioned domestic retail gasoline and diesel prices were adjusted by the Ministry of Finance and the Ministry of Industry and Trade at the price adjustment meeting on the afternoon of November 7th. Due to the hat-trick of increases in world gasoline and diesel prices in the last three trading sessions and the extension of the upward trend into the first two trading sessions of this week, domestic gasoline and diesel prices also followed suit and surged.

E5 RON 92 gasoline prices increased by 336 VND/liter, and RON 95-III gasoline prices increased by 351 VND/liter. Oil prices rose more sharply, with diesel increasing by 769 VND/liter and kerosene by 461 VND/liter. Only mazut oil saw a decrease of 67 VND/kg.

During this price adjustment period, the inter-ministerial committee did not allocate or utilize the Fuel Price Stabilization Fund for E5 RON 92 gasoline, RON 95 gasoline, diesel fuel, kerosene, and fuel oil.

Source: https://baoquocte.vn/gia-xang-dau-hom-nay-1211-goi-kich-thich-kinh-te-moi-cua-trung-quoc-gay-that-vong-gia-dau-giam-sau-293442.html