In the international market​​​​​​​

Oil posts largest weekly gain since October on Red Sea turmoil.

Oil posted the biggest weekly gain since October as attacks in the Red Sea forced hundreds of ships to take safer but longer routes, delaying the delivery of oil cargoes.

US benchmark WTI edged down to settle below $74 a barrel on Friday as reports that Russia was scaling back its export reductions in January undercut some of the Red Sea risks. Crude was still up 3% for the week. Attacks by the Iran-backed Houthi militant group forced more ships take extensive detours to avoid the vital waterway, with disruptions seen lasting through February. 

So far this week, only about 30 tankers, including crude oil and fuel carriers, have entered the Bab al-Mandab Strait at the southern end of the Red Sea, according to vessel-tracking data compiled by Bloomberg. That’s a drop of more than 40% versus the daily average over the previous three weeks as the Houthis target merchant ships in a show of support of Hamas in its war with Israel.

Crude is headed for its first annual drop since 2020 as surging production from the US and elsewhere counters efforts by the OPEC+ alliance to shore up the market through output cuts. The outlook for demand is also fragile, with the International Energy Agency forecasting that growth will slow sharply next year. 

Geopolitical events provide a buffer to oil’s decline, but “fundamental weakness continues to be the overarching concern,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.

The oil price as of December 26, 2023

Prices:

• WTI for February delivery fell 0.4% to $73.56 a barrel.
• Brent for February settlement fell 0.40% to $79.07 a barrel.
• Brent’s prompt spread was 27 cents in backwardation on Friday, after being in the opposite, bearish contango pattern for most of this month.

Crude oil price

In the domestic market

On December 21, domestic gasoline prices were adjusted according to developments in the world market.

During this executive period, the Ministry of Industry, Trade and Finance decided to extract the Price Stabilization Fund for mazut oil, not for gasoline, diesel, and kerosene products. They do not use the Price Stabilization Fund for all petroleum products.

Accordingly, the market prices of gasoline and oil of all types are as follows:

• E5RON92 gasoline: no higher than 21,199 VND/liter (an increase of 687 VND/liter compared to the current retail price), 946 VND/liter lower than RON95-III gasoline;
• RON95-III gasoline: not higher than 22,145 VND/liter (an increase of 740 VND/liter compared to the current retail price);
• Diesel oil 0.05S: not higher than 19,524 VND/liter (an increase of 514 VND/liter compared to the current retail price);
• Kerosene: no higher than 20,494 VND/liter (an increase of 530 VND/liter compared to the current retail price);
• Maduzt oil 180CST 3.5S: not higher than 15,265 VND/kg (an increase of 287 VND/kg compared to the current retail price).

Oil and gasoline in domestic market