USD, China demand, Fed dominate oil prices this week

Oil prices today, November 17, oil prices continue to be strongly affected by the rising USD, weak demand from China and the possibility of the US Federal Reserve (Fed) cooling down and cutting interest rates as well as demand growth forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).

Oil prices today, November 17, oil prices continue to be strongly affected by the rising USD, weak demand from China and the possibility of the Fed cooling down and cutting interest rates...(Source: Dan Viet Newspaper)

Oil prices plunged more than 2% in the first trading session of the week after China’s latest economic stimulus plan disappointed investors looking for demand growth in the world’s second-largest oil consumer. In addition, China’s consumer price index in October rose just 0.3%, down from 0.4% in September and the lowest in the past four months, also showing a decrease in demand in China.

Oil prices edged up slightly on Monday after OPEC cut its demand growth forecast, trading almost flat. OPEC forecast world oil demand to grow by 1.82 million barrels per day this year, down from its forecast of 1.93 million barrels per day last month. OPEC also cut its estimate of global demand growth in 2025 from 1.64 million barrels per day to 1.54 million barrels per day.

Oil prices held on to a slight gain on Tuesday, supported by short covering after prices fell to near a two-week low on OPEC's forecast for lower demand. A rise in the US dollar, which was close to a seven-month high, capped the upside in oil prices.

Oil prices held on to gains of less than 30 cents in Wednesday's trading session as a sharp drop in U.S. fuel inventories outweighed concerns about oversupply amid slowing demand growth due to a continued strengthening dollar.

According to the US Energy Information Administration, in the week ending November 8, US gasoline inventories fell 4.4 million barrels to 206.9 million barrels; distillate inventories also fell 1.4 million barrels.

In contrast to OPEC's forecast, the IEA forecasts demand growth in 2024 to increase by 60,000 barrels per day to 920,000 barrels per day, while maintaining its growth forecast of 990,000 barrels per day in 2025.

After three consecutive sessions of gains, oil prices ended the week with a decline of more than 2%. Investors' concerns about weak demand from China and the possibility of the Fed slowing down the pace of interest rate cuts pushed oil prices back down in this session.

China reported a seventh straight month of decline in refinery output, while U.S. retail sales rose in October, pointing to a strong start to the fourth quarter, dampening expectations that the Fed will cut interest rates in the final month of the year, according to Oilprice .

With 2 sessions down more than 2% and 3 sessions almost flat, oil prices this week turned down with Brent oil down about 4% and WTI oil down about 5%.

Domestic retail prices of gasoline on November 17 are as follows:

E5 RON 92 gasoline is not more than 19,452 VND/liter.

RON 95-III gasoline is not more than VND 20,607/liter.

Diesel oil not more than 18,573 VND/liter.

Kerosene not more than 18,988 VND/liter.

Fuel oil not exceeding 16,009 VND/kg.

The above domestic retail prices of gasoline and oil were adjusted by the Ministry of Finance - Industry and Trade in the price management session on the afternoon of November 14. Gasoline and oil prices decreased simultaneously, with E5 RON 92 gasoline price decreasing by 292 VND/liter, RON 95-III gasoline decreasing by 247 VND/liter, diesel oil decreasing by 344 VND/liter, kerosene decreasing by 306 VND/liter, and mazut oil decreasing by 385 VND/kg.

During this operating period, the joint ministries did not set aside or use the Petroleum Price Stabilization Fund for E5 RON 92 gasoline, RON 95 gasoline, diesel oil, kerosene, and fuel oil.

Source: https://baoquocte.vn/gasoline-price-to-date-1711-dong-usd-nhu-cau-tu-trung-quoc-fed-chi-phoi-gasoline-price-to-date-294042.html