Crude oil prices rose for a second consecutive week

Crude oil prices have just experienced a vibrant week. Photo: MXV

According to the Vietnam Commodity Exchange, the energy market in the trading session on September 16 witnessed green covering all 5 commodities. At the end of the session, both crude oil commodities marked the third consecutive increase.

Specifically, the price of Brent oil on September 16 climbed to 68.47 USD/barrel, corresponding to an increase of 1.53%; while the price of WTI oil also recorded an increase of up to 1.93%, stopping at 64.52 USD/barrel. These are both the highest prices in the past two weeks.

Concerns about Russian crude oil supplies continued to dominate the energy market in the first trading days of the week. Notably, attacks on energy facilities in Russia could have a negative impact on crude oil exports as well as the operation of refineries in this country.

In addition, the market is also expecting the latest decision of the US Federal Reserve (FED) regarding the base interest rate in the range of 4.25-4.5%. At this time, most investors believe that the FED will cut the interest rate to a relatively high level to stimulate the job market after a series of negative news since July.

These expectations have fueled the rise in oil prices, as lower interest rates are expected to support economic growth and, in turn, increase energy demand.

Another aspect that investors expect to support oil prices is the decline in crude oil reserves in the US. According to the weekly report of the American Petroleum Institute (API), commercial crude oil reserves in this country decreased by more than 3.4 million barrels, far exceeding expectations.

But on September 17, the world commodity market was shaken after the FED's decision to lower interest rates, in which oil prices fell sharply.

After a two-day policy meeting, the FED officially cut interest rates for the first time this year on September 17. This had a strong impact on commodity prices linked to the international market on the Vietnam Commodity Exchange in the trading session of the same day.

Not outside the general trend of the whole market, the energy group recorded overwhelming selling pressure when all 5 items in the group were simultaneously submerged in red. In particular, Brent oil price returned to the mark of 67.95 USD/barrel, corresponding to a decrease of about 0.76%; similarly, WTI oil price decreased by about 0.73%, falling to the mark of 64.05 USD/barrel.

FED Chairman Jerome Powell said the main goal of this interest rate cut and future cuts is to stimulate the US job market, which has been continuously shrinking since July.

Meanwhile, the US Energy Information Administration (EIA) said that in the week ending September 12, commercial crude oil reserves in the US fell sharply by nearly 9.3 million barrels - the largest decrease since mid-June, higher than the previous announcement of the American Petroleum Institute of more than 3.4 million barrels.

In the trading session on September 20 (Vietnam time), oil prices continued to fall as investors' concerns about large supply and weakening demand outweighed expectations that the US Federal Reserve's first interest rate cut of the year would stimulate consumption.

Specifically, Brent oil price decreased by 1.1% to 66.68 USD/barrel; WTI oil price decreased by 1.4% to 62.68 USD/barrel. However, for the whole week, both types of oil increased in price for the second consecutive week.

Source: https://hanoimoi.vn/dau-tho-tang-gia-tuan-thu-hai-lien-tiep-716683.html