Up for the second consecutive week

Closing the trading week, world oil prices recorded a strong increase, marking the second consecutive week of increase.

World oil prices continue to rise

According to data on Oilprice at 6:30 a.m. on February 18 (Vietnam time), WTI oil price was at 79.19 USD/barrel, up 1.49% (equivalent to an increase of 1.16 USD/barrel). Similarly, Brent oil price was at 83.58 USD/barrel, up 0.74% (equivalent to an increase of 0.61 USD/barrel).

WTI crude futures settled at $79.19 a barrel, while Brent crude settled at $83.58 a barrel on Friday, hitting their highest since November and poised to post a second straight weekly gain.

Geopolitical tensions in the Middle East and Eastern Europe have shown no signs of abating, pushing oil prices up nearly $1 in the second trading session of the week. A ceasefire or peace deal in Ukraine has yet to be reached. Meanwhile, talks between US, Egyptian, Israeli and Qatari mediators on a ceasefire in Gaza ended without any breakthrough. In the Red Sea, Houthi forces continued to attack ships with trade ties to the US, Britain and Israel.

Oil prices plunged more than $1 in the following trading session after a report of a surge in US crude inventories and a possible security threat in the US - the world's largest economy - that could reduce demand. US crude inventories rose 12 million barrels last week, nearly five times the analyst expectation of only a 2.6 million barrel increase.

Oil prices rose in the last two trading sessions of the week after US retail data fueled a sell-off in the dollar and tensions in the Middle East increased.

U.S. retail sales fell 0.8 percent in January, according to the U.S. Census Bureau. December data was revised lower, showing sales rising 0.4 percent instead of 0.6 percent. The data further bolsters the view that the Fed will soon cut interest rates.

Developments in the Middle East show that geopolitical tensions in this region are unlikely to cool down.

Also this week, reports from the US showed that the country's consumer price index (CPI) rose 0.3% in January, up from 0.2% in December 2023. The producer price index (PPI) rose 0.3% in January, higher than expected amid a sharp increase in service costs.

Regarding the global oil demand forecast, OPEC said oil demand will increase by 2.25 million barrels per day this year and 1.85 million barrels per day in 2025. Meanwhile, the IEA said global oil demand growth will slow to 1.22 million barrels per day, about half of last year's growth, and lower than its previous forecast of 1.24 million barrels per day.

Domestic gasoline prices

Domestic retail gasoline prices on February 18 were applied according to the adjustment session from 3:00 p.m. on February 15 by the Ministry of Finance - Ministry of Industry and Trade.

Specifically, the price of E5 RON 92 gasoline increased to 22,831 VND/liter; RON 95 gasoline increased to 23,919 VND/liter.

Similarly, diesel price increased to 21,361 VND/liter; kerosene price increased to 21,221 VND/liter. Fuel oil price also increased in this adjustment session, specifically, increased to 15,906 VND/kg.

According to the Ministry of Industry and Trade, the above changes in domestic gasoline prices are due to the influence of factors such as: concerns that tensions in the Middle East could disrupt oil supplies, conflicts in the Red Sea region affecting transportation activities, the Organization of the Petroleum Exporting Countries (OPEC) maintaining its forecast of increased oil demand this year, and the decline in operating capacity of oil refineries in the US...

The above factors have caused world oil prices to fluctuate between increases and decreases in recent days, but the general trend is upward.

Regarding the Petroleum Price Stabilization Fund (BOG) in this management period, the Ministry of Industry and Trade - Ministry of Finance decided: Set aside the BOG Fund for fuel oil, not set aside the BOG Fund for gasoline, diesel and kerosene; do not use the BOG Fund for all petroleum products.

PHAM DUY

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