Oil prices edged lower on Monday amid muted holiday trading ahead of the end of the year as traders await more economic data from China and the United States later this week to gauge growth in the world’s two largest oil consumers, Reuters reported.
Brent crude futures fell 8 cents to $74.09 a barrel at 7 a.m. U.S. West Texas Intermediate crude fell 5 cents to $70.55 a barrel.
Last week's rise in oil prices was supported by news related to China and US oil inventories.
Oil markets have warmed following news that the Chinese government has agreed to issue 3 trillion yuan ($411 billion) of special treasury bonds in 2025. This would be the largest issuance ever, and would be three times larger than the 1 trillion yuan bond issuance in 2024.
Along with the above-mentioned stimulus to China's economic growth, the market also expects demand in the world's leading oil importer and consumer to increase next year. The World Bank (WB) has raised its forecast for Beijing's gross domestic product (GDP) growth this year and next. Accordingly, China's GDP will reach 4.9% in 2024, up 0.1% from the 4.8% forecast in June; and reach 4.5% in 2025, up 0.4% from the previous forecast.
Oil prices also accelerated after US oil inventory data from the US Energy Information Administration (EIA) and the American Petroleum Institute (API). According to the API, US oil inventories fell by 3.2 million barrels in the week ending December 20. According to the EIA, the US oil inventory decline was 4.2 million barrels, 1 million barrels higher than the API data and more than twice the 1.9 million barrel decrease expected by analysts.
According to a representative of a petroleum business, domestic petroleum prices will fluctuate according to the world petroleum situation. According to current market developments, it is forecasted that in the next price adjustment period, petroleum prices will be adjusted in opposite directions, with gasoline prices increasing and oil prices decreasing. Of which, gasoline prices may increase by about 150 VND/liter; oil prices may decrease by about 60 VND/liter.
Since the beginning of the year, since the price adjustment session on January 4, gasoline prices have increased 24 times and decreased 26 times. Oil prices have increased 22 times and decreased 28 times.
In the adjustment session on December 26, the price of E5 RON 92 gasoline decreased compared to the previous adjustment period, at 19,817 VND/liter (down 427 VND/liter). The price of RON 95-III gasoline decreased compared to the previous adjustment period, at 20,547 VND/liter (down 457 VND/liter).
Prices of petroleum products increased and decreased in different directions. Of which, diesel 0.05S is priced at 18,630 VND/liter (down 103 VND/liter); kerosene has a new price of 18,708 VND (down 260 VND/liter); fuel oil is priced at 15,970 VND/kg (up 67 VND/kg).
Also during this operating period, the operator did not set aside or use the Petroleum Price Stabilization Fund - BOG for all petroleum products.
