Oil prices fell about 2 per cent last night (September 18), continuing the decline from the previous session after Saudi Arabia announced to quickly resume full production and US crude oil reserves unexpectedly increased. Brent crude delivered in November 2019 closed the session on September 18, down 95 US cents or 1.5 per cent to $63.6 a barrel, while WTI crude oil to be delivered in this October fell by $1.23 or 2.1 per cent to $58.11 per barrel.
In the morning of September 18, the world gold price was $1,501 per ounce. The price of gold delivered in December 2019 on Comex New York stood at $1,510 per ounce.
The gold’s price today was 17 per cent higher ($218 per ounce) compared to the beginning of the year. The world gold price is VND41.6 million ($1,808.7) per tael, excluding taxes and fees, VND400,000 ($17) lower than the domestic price.
World gold price fluctuated strongly around the sensitive $1,500 threshold due to recent news, the most disorienting of which was the attack on two Saudi oil facilities over the last weekend.
The attack caused oil prices to soar by around 15 per cent in the following session and was the biggest rally in more than two decades. Rising oil prices can lead to two opposing scenarios, driven by the US Federal Reserve System’s (Fed) reaction.
Sustained increase in oil prices may cause a sharp increase in inflation in the US, prompting the Fed to call off its monetary loosening and keep interest rates unchanged.
On the other hand, Fed may choose to loosen the monetary policy, even more, to cope with a potential slowdown in the US economy.
On the domestic gold market, on September 19, most gold shops reduced the buying and selling prices of 9999 gold by VND50,000-100,000 ($2.17-4.35). By the end of the trading session, DOJI Jewelry Group listed SJC gold at VND 41.40 million ($1,800) per tael (buy) and VND41.60 million ($1,808) per tael (sell). Saigon Jewelry Company listed SJC gold at VND41.55 million ($1,806.52) per tael (buy) and VND41.87 million ($1,820.43) per tael (sell).
The weekend’s attack on the Saudi oil facilities was reported to dent daily output by a reduction of 5.7 million barrels or about 5 per cent of global oil production.
According to experts, the attack could be the largest ever hitting an energy production facility, with an impact felt across the global economy.