Trade tensions continue to put pressure on oil prices

The Vietnam Commodity Exchange (MXV) said global trade tensions put pressure on oil prices.

The MXV-Index was almost flat, inching up 0.05% to 2,251 points.

Industrial raw materials market is differentiated. Source: MXV

The industrial raw material market witnessed clear differentiation. In particular, two rubber products increased by more than 1%. Specifically, the price of RSS3 rubber on the Osaka exchange increased by more than 1.3% to 2,033 USD/ton; while the price of TSR20 in Singapore also increased by more than 1% to 1,722 USD/ton.

According to MXV, the demand for rubber imports from China continues to remain stable, acting as the main driving force supporting rubber prices. In addition, the recovery of the Chinese automobile industry - the country that consumes the majority of rubber products - also contributed to strengthening market sentiment.

In the domestic market, latex prices remain low due to prolonged rains reducing latex output and quality. Recorded on October 15, latex prices in old Binh Phuoc fluctuated at 400 - 410 VND/degree, little changed compared to the beginning of the week. Some purchasing enterprises such as Phu Rieng Rubber listed 420 VND/degree, while cup latex in old Ba Ria - Vung Tau was at 18,600 - 20,000 VND/degree.

That color dominates the energy market. Source: MXV

Meanwhile, the red continued to cover the energy market. Brent crude oil price decreased by 0.77% to 61.91 USD/barrel, while WTI oil also decreased by 0.73% to close at 58.27 USD/barrel.

Investors are increasingly concerned about escalating trade tensions between the US and China. The world’s two largest economies have repeatedly warned of retaliatory measures, raising concerns about a slowdown in global trade and a drop in energy demand.

Since October 10, WTI oil prices have repeatedly fallen below the threshold of 60 USD/barrel, causing cautious sentiment to prevail in the market.

According to Bank of America's forecast, if tensions between the US and China do not cool down soon, Brent oil prices could fall sharply, even below $50/barrel.

This scenario would put global growth under deflationary pressure, along with increasing oversupply creating a double pressure that would make it difficult for oil prices to recover.

Source: https://hanoimoi.vn/cang-thang-thuong-mai-tiep-tuc-gay-suc-ep-len-gia-dau-719814.html