A "green" week for oil prices

With just one down session at the beginning of the week, oil prices have continuously recovered throughout the week and are "bright green" on the commodity price list.

Last week, oil prices recovered strongly. Photo: MXV

According to the Vietnam Commodity Exchange (MXV), on September 22, oil prices recorded the fourth consecutive decline as supply and demand pressure dominated energy prices.

The energy market witnessed overwhelming selling pressure with 4/5 commodities simultaneously decreasing in price. Of which, Brent oil price fell to 66.57 USD/barrel, corresponding to a decrease of about 0.16%; while WTI oil price decreased about 0.06%, stopping at 62.64 USD/barrel, marking the 4th consecutive session of weakness.

News of plans to increase supplies from the Middle East and concerns about falling energy demand in the US outweighed the impact of geopolitical tensions, putting pressure on oil prices in the first trading session of the week.

According to Mr. Ali Nizar Al-Shatari, Director General of the State Oil Marketing Company of Iraq (SOMO), Iraq's oil exports in September are expected to reach 3.4-3.45 million barrels/day, a slight increase compared to 3.38 million barrels/day in August.

Kuwait, another OPEC member, has increased its maximum oil production capacity to 3.2 million barrels per day, the highest level in more than a decade. The country is expected to maintain production at 2.559 million barrels per day.

Meanwhile, the risk of declining energy demand in the US still exists as investors are concerned about the health of the world's largest economy .

However, in the following days until the end of the week, oil prices returned to the recovery trend and continued to increase. The energy market on the third trading session (September 23) witnessed overwhelming buying power when all 5 commodities in the group increased sharply.

Brent crude oil price climbed to 67.63 USD/barrel, up 1.59%; while WTI crude oil price also reached 63.41 USD/barrel, up 1.81%. World oil prices ended a series of 5 consecutive sessions of decline.

In the trading session on Thursday (September 24), strong buying pressure pushed up the prices of 4/5 commodities. The prices of two crude oil commodities stood out the most when they both increased by nearly 2.5% to 64.9 USD/barrel for WTI oil and 69.3 USD/barrel for Brent oil.

The reason for the strong recovery in crude oil prices is that crude oil exports from northern Iraq continue to be disrupted, while supplies from Russia and the Middle East still pose a potential risk of disruption.

Crude oil prices, on the other hand, recovered after the latest report from the US Energy Information Administration (EIA) showed that commercial crude oil inventories fell by 607,000 barrels in the week, contrary to forecasts of a slight increase. Gasoline inventories fell by more than 1 million barrels despite increased refining capacity, reflecting that demand in the world's largest economy remains stable.

At the same time, the US Treasury Department tightened licensing terms for Chevron, forcing the joint venture in Venezuela to pay in kind instead of cash - a move that could cause oil exports from this South American country to fall by up to 50%.

Recorded today, September 27 (Vietnam time), world oil prices continued to increase. Specifically, Brent oil prices increased by 1.02% to 70.13 USD/barrel. WTI oil prices also increased by 1.14% to 65.72 USD/barrel. Both types of oil recorded the strongest increase since mid-June.

Source: https://hanoimoi.vn/tuan-ruc-xanh-cua-gia-dau-717519.html