China's economy, Middle East situation strongly affect oil prices

Oil prices today, October 19, ending the last trading session of the week (October 18), oil prices fell more than 1 USD after data showed China's economic growth slowing and investors accepted mixed prospects in the Middle East.

Oil prices today, October 19, oil prices fell more than 1 USD after data showed China's economic growth slowing down and the impact of the situation in the Middle East. (Source: Oliprice)

Brent crude fell $1.39, or 1.87 percent, to $73.06 a barrel. WTI crude fell $1.45, or 2.05 percent, to $69.22 a barrel.

For the week, Brent crude fell more than 7%, while WTI crude fell about 8%, marking the biggest weekly decline since September 2. The factor pushing oil prices down this week was the forecast of lower global oil demand in 2024 and 2025 from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).

According to Reuters , although consumption and industrial output in September in China, the world's leading oil importer, both exceeded forecasts, economic growth in the third quarter of 2024 of this East Asian country still recorded the slowest pace since early 2023.

John Kilduff, partner at Again Capital in New York, said demand from China plays an important role and has a big influence on oil prices at the moment.

China's oil refining output fell for a sixth straight month as low refining margins and weak fuel consumption curbed processing.

According to Neil Atkinson, an independent energy analyst in Paris and former head of oil at the IEA, there are many factors affecting oil prices, including the move to electrify vehicles in China.

In August, electric vehicle sales in China jumped 42% to a record high of more than 1 million vehicles.

Meanwhile, the People's Bank of China has launched two programs, under which 800 billion yuan (equivalent to 112.38 billion USD) will be injected into the stock market.

Regarding the conflict situation in the Middle East, investors are still closely watching Israel's moves towards Iran. As for Hezbollah, after the death of Hamas leader Yahya Sinwar, the group announced that it would move to a new phase and escalate the conflict with the Israeli army. This extinguished hopes at the beginning of the trading session on October 18 that the death of Hamas leader Yahya Sinwar would hasten the end of the escalating conflict in the Middle East.

Domestic retail prices of gasoline on October 19 are as follows:

E5 RON 92 gasoline is not more than 19,730 VND/liter.

RON 95-III gasoline is not more than VND 20,962/liter.

Diesel oil not more than 18,321 VND/liter.

Kerosene not more than 18,627 VND/liter.

Fuel oil not exceeding 16,090 VND/kg.

The above domestic retail price of gasoline was adjusted by the Ministry of Finance - Industry and Trade at the price management session on the afternoon of October 17.

Although world oil prices increased last week, prices continuously decreased in the first three sessions of the week, so domestic oil prices also decreased. E5 RON 92 gasoline prices decreased by 116 VND/liter, RON 95-III gasoline decreased by 99 VND/liter. Oil prices decreased more with diesel down 179 VND/liter, kerosene down 163 VND/liter. Among oil products, only mazut oil increased by 179 VND/kg.

In this operating period, the joint ministries did not set aside or use the Petroleum Price Stabilization Fund for E5 RON 92 gasoline, RON 95 gasoline, diesel oil, kerosene, and fuel oil.

Source: https://baoquocte.vn/gia-xang-dau-hom-nay-1910-kinh-te-trung-quoc-tinh-hinh-trung-dong-tac-dong-manh-den-gia-dau-290623.html