DNVN - World oil prices rose nearly 2% in the first trading session of the week, recovering somewhat after falling more than 7% last week. This recovery took place in the context of conflicts in the Middle East showing no signs of cooling down, along with the possibility of Israel retaliating against Iran, increasing concerns about supply from this region.
An oil refinery in California, USA. Photo: AFP/TTXVN
At the end of the trading session, the price of North Sea Brent crude oil increased by 1.23 USD, equivalent to 1.68%, reaching 74.29 USD/barrel. The price of US light sweet crude oil (WTI) also increased by 1.34 USD, or 1.94%, to 70.56 USD/barrel.
Last week, Brent and WTI crude prices fell about 7% and 8%, respectively, marking their biggest weekly declines since September 2, due to slowing Chinese economic growth and signs of easing geopolitical tensions in the Middle East.
Mr. Dennis Kissler, Senior Vice President of BOK Financial, commented that oil prices increased in this session due to escalating conflicts in the Middle East and Israel preparing for possible retaliatory attacks targeting Iran.
In other developments, China on October 21 cut its benchmark lending rate as expected, after cutting other policy rates last month as part of a package of stimulus measures aimed at reviving the economy . New data showed that China's economy grew at its slowest pace since early 2023 in the third quarter, raising concerns about oil demand.
China's oil demand growth is expected to remain weak through 2025 despite recent stimulus measures, as the world's second-largest economy electrifies cars and grows at a slower pace, the head of the International Energy Agency (IEA) said.
Meanwhile, Minneapolis Federal Reserve Bank President Neel Kashkari reiterated his prediction on October 21 that the Fed will only cut rates slightly in the coming quarters. However, if the labor market weakens significantly, he could support faster rate cuts. Lower interest rates would reduce borrowing costs, which could boost economic activity and oil demand.
Hung Le (t/h)
Source: https://doanhnghiepvn.vn/quoc-te/gia-dau-the-gioi-phuc-hoi-sau-khi-sut-giam-7-hoi-tuan-truoc/20241022085851635
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