Specifically, Brent oil price increased by 2 USD, equivalent to 2.5%, to 80.59 USD/barrel. US WTI oil prices increased by 2.01 USD, to 75.57 USD/barrel.
The US Department of Defense recently accused Iran of using drones to attack a Korean-flagged chemical ship about 200 nautical miles off the coast of India. This has escalated tensions in the region and increased risks to transport routes.
However, according to Reuters, despite concerns about the situation in the Middle East and the re-routing of ships by shipping companies, actual supply has not been affected.
On December 24, Maersk announced the restart of transport routes across the Red Sea, while France's CGM is increasing the number of vessels passing through the Suez canal.
Oil prices have also been supported to increase by expectations that the US Federal Reserve (Fed) will cut interest rates next year. Lower interest rates reduce consumer loan costs, boost economic growth and oil demand.
According to CME Group's FedWatch tool, traders who bet up to 86% of the US Central Bank will cut interest rates by at least 25 basis points in March 2024, a sharp increase compared to a bet rate of only about 21% in November.
The slight decline in the USD index also makes USD-denominated oil cheaper for investors holding other currencies, boosting demand.
The International Energy Agency (IEA) forecasts global oil demand to increase by 1.1 million barrels/day next year. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) said that demand will increase by 2.25 million barrels/day.
Regarding prices, Goldman Sachs Bank (USA) said that next year, the average Brent oil price will reach 80-81 USD/barrel. The IEA forecasts Brent oil prices to average $82.57/barrel next year.
Domestically, tomorrow afternoon (December 28), retail prices of gasoline and oil will be adjusted in the price management period of the Ministry of Finance - Industry and Trade. It is expected that gasoline prices will increase and decrease by about 100 VND/liter.
Domestic retail prices of petroleum on December 27 are specifically as follows: E5 RON 92 gasoline is not more than VND 21,199/liter; RON 95 gasoline is not more than VND 22,145/liter; diesel is not more than VND 19,524/liter; kerosene is not more than VND 20,494/liter; mazut is not more than VND 15,265/kg.
