According to Reuters, oil prices fell slightly at the end of the first trading session of the week (January 6), breaking a streak of 5 consecutive sessions of increase. The decline in oil prices was affected by some pessimistic economic news from the US and Germany, despite price support from the weak USD and forecasts of increased heating demand due to winter storms.
Last week, on January 3, both benchmarks ended the week at their highest levels in more than six to seven weeks, buoyed by fiscal stimulus to prop up China’s faltering economy. Analysts say the oil market will enter 2025 with a fairly balanced supply and demand, but prices will be supported by persistent geopolitical tensions.
Oil prices lost momentum and fell after economic data from the US and Germany. Data from the US Census Bureau showed that new orders for US-made goods fell 0.4% in November 2024 after rising 0.5% in October due to weak demand for commercial aircraft while business spending on equipment appeared to have slowed in the fourth quarter of 2024.
Meanwhile, in Germany, Europe's largest economy, annual consumer price inflation rose to 2.9 percent in December, 0.3 percent higher than analysts' forecasts and 0.5 percent higher than the previous month. The rise in inflation was due to higher food prices and less-than-expected declines in energy prices.
To curb high inflation, central banks often raise interest rates, which can slow economic growth and energy demand.
Domestically, the retail price of domestic gasoline and oil is being adjusted by the Ministry of Finance - Industry and Trade in the price management session on the afternoon of January 2, 2025. Accordingly, the prices of all gasoline and oil products have increased. E5 RON 92 gasoline increased by VND 240/liter, RON 95-III gasoline increased by VND 199/liter, diesel increased by VND 125/liter, kerosene increased by VND 126/liter, and fuel oil increased by VND 129/kg.
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 continue to increase. Of which, gasoline prices will increase by about 300-400 VND/liter; oil prices will increase by about 540 VND/liter.
