World oil prices skyrocket, highest since 2015

After mixed fluctuations in the first session of the week, world oil prices increased consecutively in the remaining four sessions of the week and jumped to the highest level since 2015 in the last session of the week.

The prices of two key commodities in the market moved in opposite directions in the first trading session of this week. Brent crude oil prices rose on news of a temporary shutdown of the North Sea oil pipeline to fix a leak and a strike in the energy sector in Nigeria. Meanwhile, the price of West Texas Intermediate (WTI) crude oil was under pressure due to concerns about the trend of increasing US production.

Entering the trading session on December 19, world oil prices increased as investors awaited official data on US oil reserves. The weak US dollar also made oil - which is traded in this currency - more attractive to investors holding other currencies. The US dollar index, which measures the value of the greenback against six other major currencies, fell 0.27% to 93.446 at the end of the trading session.

In the trading sessions on December 20 and 21, world oil prices continued to increase thanks to reports showing that US crude oil reserves last week decreased more than expected. In addition, the continued shutdown of the Forties oil pipeline system in the British North Sea region is also a factor supporting the price of "black gold".

The US Energy Information Administration (EIA) reported that crude oil inventories in the world's largest economy fell by 6.5 million barrels in the week ending December 15, exceeding analysts' forecasts. Currently, US crude oil inventories, excluding the strategic oil reserve, stand at 436.5 million barrels, the lowest level since October 2015. The decline in oil reserves is due to the US's increasing export activities and efforts to restrain supply by some key oil producers.

Oil prices jumped to their highest level since 2015 on Friday, as oil producers pledged to support the price of the yellow metal. Brent crude rose 35 cents to $65.25 a barrel, its highest since June 2015, while WTI crude rose 11 cents to $58.47 a barrel, its highest since mid-2015. Russian Energy Minister Alexander Novak said the Organization of the Petroleum Exporting Countries (OPEC) and Russia could extend their production cuts to avoid a supply glut.

OPEC and 10 non-OPEC oil producers agreed last month to extend their production cuts until the end of 2018. Kuwaiti Oil Minister Bakhit al-Rashidi said compliance with the deal was now at 122 percent, the highest level since the deal began.

US oil production has increased by 16% since mid-2016, reaching 9.8 million barrels per day (bpd), close to the level of leading oil producers such as Saudi Arabia (10 million bpd) and Russia (11 million bpd). This is undermining efforts by OPEC and other oil producers to rebalance the market.

According to Tra My/baotintuc