Weekly increase due to impact from geopolitical risks

Oil prices today November 24, this week, the strong re-emergence of geopolitical risks has supported oil prices to rebound strongly.

Oil prices today, November 24, this week, the strong resurgence of geopolitical risks has supported oil prices to rebound strongly. (Source: Oilprice)

In the very first trading session of the week, oil prices gained more than $2 as the market reacted to news that crude oil production at Norway's Johan Sverdrup oil field had been temporarily halted due to a power outage, and concerns about escalating Russia-Ukraine conflict arose after US President Joe Biden authorized Ukraine to use long-range missiles to strike deep into Russian territory.

Oil prices continued their upward trend for the second consecutive trading session. Trading was thin due to investor caution amid signs of escalating tensions between Russia and Ukraine, and the balance between factors supporting prices (production at Kazakhstan's largest oil field fell by approximately 30% due to repairs, and the possibility of increased Chinese oil imports in November) and factors limiting prices (a strong US dollar and partial restoration of production at the Johan Sverdrup field).

Rising US oil inventories caused oil prices to lose momentum, plunging about 50 cents in the third trading session. According to the US Energy Information Administration, in the week ending November 15, US gasoline inventories increased by 2.1 million barrels, oil inventories increased by 500,000 barrels.

The escalating Russia-Ukraine conflict has fueled market concerns about supply shortages, helping oil prices rebound. In Wednesday's trading session, oil prices rose nearly 2% after Russian President Vladimir Putin announced that Russia had launched a hypersonic medium-range ballistic missile at a Ukrainian military facility, while also warning the West of Moscow's potential attacks on military facilities in any country possessing weapons against Russia. This latest move by Russia was in response to Ukraine firing US ATACMS and British Storm Shadow missiles at targets inside Russian territory.

Continuing the momentum, oil prices accelerated by about 1% in the last trading session of the week.

With 4 sessions of increase and 1 session of decrease, oil prices this week marked a strong week of increase: Brent oil increased approximately 6% to 75.17 USD/barrel, WTI oil increased more than 6% to 71.24 USD/barrel. Both benchmark oil products reached the highest level in the past 2 weeks.

Domestic retail prices of gasoline on November 24 are as follows:

E5 RON 92 gasoline is not more than 19,343 VND/liter.

RON 95-III gasoline should not exceed 20,528 VND/liter.

Diesel oil not more than 18,509 VND/liter.

Kerosene not more than 18,921 VND/liter.

Fuel oil not exceeding 16,014 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 21st. Due to the sharp drop in world gasoline and diesel prices last week but a slight recovery this week, domestic prices also continued their downward trend with a slight decrease. E5 RON 92 gasoline saw the largest decrease, at 109 VND/liter. RON 95-III gasoline decreased by 79 VND/liter, diesel decreased by 64 VND/liter, and kerosene decreased by 67 VND/liter. Only mazut increased by 5 VND/kg.

During 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/gasoline-price-to-date-2411-tuan-bat-tang-do-tac-dong-tu-rui-ro-dia-chinh-tri-294910.html