COMMODITIES MARKET: Exciting developments

(Chinhphu.vn) - The world raw material market continued to be vibrant, the MXV-Index extended its increasing streak to the 7th consecutive session, closing yesterday (September 16) at 2,292 points, up 0.4%.

Oil prices hit two-week high

Concerns about Russian crude oil supply continued to dominate the energy market yesterday. According to MXV, the energy market yesterday saw green covering all 5 commodities in the group. At the end of the session, both crude oil commodities marked the third consecutive increase.

Specifically, Brent oil price climbed to 68.47 USD/barrel, corresponding to an increase of 1.53%; while WTI oil price also recorded an increase of up to 1.93%, stopping at 64.52 USD/barrel. These are the highest prices in nearly two weeks for both commodities.

According to many sources and analysis, recent attacks on energy facilities in Russia could have a negative impact on crude oil exports as well as the operation of refineries in this country.

In addition, the market is also expecting the latest decision of the US Federal Reserve (Fed) regarding the base interest rate in the range of 4.25-4.5%. Most investors believe that the Fed will cut the current relatively high interest rate to stimulate the job market after a series of negative news since July. These expectations are driving the increase in oil prices, because lower interest rates are believed to support economic growth, while also increasing energy consumption demand.

Another aspect that investors are expecting to support oil prices in the coming time is the decline in crude oil reserves in the US. According to the latest weekly report of the American Petroleum Institute (API), in the week ending September 12, commercial crude oil reserves in this country decreased by more than 3.4 million barrels, far exceeding market expectations. This information, along with the upcoming report of the US Energy Information Administration (EIA), is expected to continue to push up prices in the coming trading sessions.

In addition, the natural gas market in the US is also on the way to recovery in yesterday's trading session. The price of this commodity on the NYMEX floor, at the end of the session, increased by 1.97%, reaching the mark of 3.1 USD/MMBtu, the highest level in nearly a week.

Forecasts of late summer heat waves in the US continue to support price increases as demand for electricity for cooling is also expected to increase, leading to increased fuel demand for power plants here.

At the end of yesterday's trading session, the industrial raw materials market recorded overwhelming selling pressure with 5/7 items simultaneously decreasing in price. Notably, at the end of the session, cocoa prices lost more than 3.5% to 7,371 USD/ton.

According to MXV, favorable weather in major cocoa growing regions in recent times has increased expectations of a bumper cocoa crop, contributing to improved supply in the coming crop year.

Source: https://baochinhphu.vn/thi-truong-hang-hoa-dien-bien-soi-dong-102250917091910323.htm