Oil prices fell in early trading on Thursday after the U.S. Federal Reserve signaled it would slow the pace of interest rate cuts through 2025, potentially weighing on fuel demand, Reuters reported.
Brent crude futures fell 33 cents, or 0.45 percent, to $73.06 a barrel at 0107 GMT on Dec. 19. U.S. West Texas Intermediate crude futures fell 36 cents, or 0.51 percent, to $70.22.
The decline reversed much of the gains from Wednesday, when prices settled higher as U.S. crude inventories fell and the Federal Reserve cut interest rates by 25 basis points as expected. But those gains were capped after the central bank later took a more hawkish view of the outlook for 2025, further weighing on sentiment.
At their December 17-18 policy meeting, central banks projected they would make just two rate cuts of 0.25 percentage points each next year as inflation remains high, half a point less than they had predicted in September.
Lower interest rates reduce borrowing costs, which could boost economic growth and oil demand. U.S. crude and distillate inventories fell while gasoline inventories rose in the week ended Dec. 13, the Energy Information Administration said Wednesday.
The domestic retail price of gasoline on December 19, 2024 is applied according to the price at the management session on the afternoon of December 12 of the Ministry of Finance - Industry and Trade.
Accordingly, the price of E5 RON92 gasoline decreased by 3 VND/liter, not exceeding 19,861 VND/liter. The price of RON95 gasoline increased by 33 VND/liter, not higher than 20,596 VND/liter.
Meanwhile, the prices of all types of oil decreased. Diesel oil price decreased by 127 VND/liter, not higher than 18,255 VND/liter. Kerosene price decreased by 251 VND/liter, not higher than 18,566 VND/liter. Fuel oil decreased by 551 VND/kg, not higher than 15,574 VND/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 price adjustment period on the afternoon of December 19, petroleum prices may increase sharply.
In particular, the price of RON 95-III gasoline is forecasted to increase by about 420 VND/liter; E5 gasoline by about 390 VND/liter; and Diesel oil by about 490 VND/liter.
