Oil prices continue to plummet after OPEC+ decision

Specifically, Brent oil price decreased by 1.98 USD, equivalent to 2.45%, to 79.10 USD/barrel. US WTI oil price decreased by 1.89 USD, equivalent to 2.49%, to 74.07 USD/barrel.

Brent crude oil prices are trading at — Brent oil price is trading at 79.10 USD/barrel. Photo: Screenshot

At a meeting on November 30, OPEC+ producers agreed to cut about 2.2 million barrels per day (bpd) in the first quarter of next year. This includes an additional 1.3 million bpd of voluntary cuts already made by Saudi Arabia and Russia.

According to Mr. James Davis at FGE, from the announced cut level, the actual number of additional cuts is only about 600-700 thousand barrels/day compared to the planned level in the fourth quarter of 2023.

OPEC+ supplies more than 40% of the world's oil. The group is focused on reducing production as oil prices have fallen from around $98 a barrel in late September amid concerns about weaker economic growth in 2024.

However, according to analysts, non-OPEC+ oil production may offset the shortage, limiting the increase in oil prices. Notably, US oil production is at a record level of 13.2 million barrels/day.

Meanwhile, on December 1, US Federal Reserve (Fed) Chairman Jerome Powell said that the US Central Bank will adjust interest rates cautiously.

The US manufacturing sector remained subdued in November and factory employment fell, a survey showed. Investors are keeping a cautious eye on global manufacturing activity, which remained weak in November due to weak demand.

Elsewhere, talks to extend a week-long ceasefire between Israel and Hamas have failed to produce the expected results, meaning the conflict in Gaza is back on and could lead to disruptions in global oil supplies.

On the supply side, on December 1, the US imposed additional sanctions related to Russia's oil price ceiling on three oil tankers.

The number of US oil rigs increased by five to 505 this week, the highest level since September, energy services firm Baker Hughes said.

The retail prices of domestic gasoline on December 2 are as follows: E5 RON 92 gasoline is not more than VND 21,799/liter; RON 95 gasoline is not more than VND 22,990/liter; diesel oil is not more than VND 20,196/liter; kerosene is not more than VND 21,116/liter; mazut oil is not more than VND 15,729/kg.

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