MXV-Index reversed and weakened after 4 positive sessions

According to the Vietnam Commodity Exchange (MXV), the MXV-Index reversed to decrease by 0.1% to 2,176 points, notably in which corn and oil prices decreased sharply.

Energy market in red. Source: MXV

Red dominated the energy market in the trading session on August 12. At the close, the prices of all five commodities weakened simultaneously. In particular, the prices of two crude oil commodities continued to fall sharply after the US Energy Information Administration (EIA) raised its forecast for global production and reserves, increasing the pressure of oversupply.

Brent crude oil prices closed at $66.12/barrel, down 0.77%; WTI crude oil prices fell 1.24% to $63.17/barrel, both reaching their lowest levels since early June.

In its August Short-Term Energy Outlook, the EIA projected U.S. crude oil production to hit a record 13.6 million barrels per day in December and to average 13.4 million barrels per day through 2025.

In parallel, the strong increase in supply from OPEC+ is expected to push global commercial crude oil reserves up by 800,000 barrels per day compared to the July forecast, to 2 million barrels per day in the fourth quarter of 2025 and the first quarter of 2026.

The oversupply scenario led EIA to lower its Brent price forecast to $58/barrel in the fourth quarter of 2025 and to around $50/barrel in early 2026. The average Brent price in 2026 was revised down from $58 to $51/barrel.

Selling pressure increased in the agricultural commodity market. Source: MXV

Closing yesterday's trading session, red dominated agricultural products. In particular, corn prices on the Chicago floor continued to weaken, losing more than 3.5% to 146 USD/ton.

According to MXV, the strong pressure from the oversupply situation, especially after the WASDE report was released, triggered a strong selling wave in the market.

Source: https://hanoimoi.vn/chi-so-mxv-index-dao-chieu-suy-yeu-sau-4-phien-khoi-sac-712415.html