📋 Tender Overview
Selling pressure continued to dominate the raw material market in the first session of the week, pulling the MXV-Index down more than 1% and extending the chain of decline to the third consecutive session. The focus is still on the energy group when oil prices plunged more than 5% after a series of cooling signals in the Middle East. Download Middle East tensions cool down, selling pressure returns to energy groups New signs of easing tensions in the Middle East appeared over the weekend, helping trigger technical adjustments in the market and causing world crude oil prices to fall again in the first trading session of August. Last Saturday (August 1), US President Donald Trump announced a postponement of the attack on Iran, to pave the way for diplomatic measures. This move immediately impacted the crude oil market, creating a sharp decline in prices for this commodity. Until yesterday (August 3), Mr. Trump further confirmed that negotiations with Tehran were taking place, continuing to strengthen optimism in the market about the ability to stabilize oil supply from the Middle East. Mr. Trump also said Washingtons decision to cool tensions was made at the request of many Middle Eastern countries, including talks with Saudi Crown Prince Mohammed bin Salman. Previously, the market was particularly worried when, in addition to the Strait of Hormuz, Houthi forces also announced a blockade of the Bab el-Mandeb Strait - an important alternative maritime route for Saudi Arabia. As for Iran, although it still denied the White Houses statements about conducting or planning negotiations with the US, Tehran also sent positive signals. Irans national news agency over the weekend quoted Foreign Minister Abbas Araqchi as saying that negotiations between Iran and Oman on the mechanism to manage maritime activities through the Strait of Hormuz are entering the final stage. According to data from the Vietnam Commodity Exchange (MXV), at the end of yesterdays trading session, WTI oil price decreased by more than 5.1% to 80.3 USD/barrel, while Brent oil decreased by more than 4.7%, to 83.3 USD/barrel. Download According to Mr. Nguyen Thang Long, Strategy Director of VMEX Commodity Trading Joint Stock Company (TVKD No. 045 of MXV), in addition to signs of cooling in the Middle East, oil prices are also under additional pressure from the weakening of demand. Chinas manufacturing PMI index in July fell to its lowest level since the beginning of the second quarter, increasing concerns about the outlook for energy consumption in the worlds second largest economy. However, the possibility of oil prices rising again remains if Iran continues to deny negotiations with the US. If there are no notable developments to help mend relations between the two countries, the current optimism could quickly be eroded. In the context of oil supply from the Middle East across the strait. Hormuz and Bab el-Mandeb are still seriously disrupted, oil prices can completely recover, Mr. Long said. Download Besides, Mr. Long said that another factor that needs to be monitored is that the amount of oil in the US Strategic Crude Oil Reserve (SPR) has dropped to its lowest level in more than 40 years. Meanwhile, the US economy is showing signs of improvement when the manufacturing PMI index reached its highest level in more than four years. This raises concerns about the ability to meet demand in the worlds largest oil consuming market and could become a factor supporting prices in the near future. Download In contrast to the energy market in the first session of the week, green prevailed in the industrial materials group. Among them, cocoa products attracted attention when the closing price soared more than 10%, to 5,939 USD/ton. The main driving force comes from new concerns about the supply prospects in Ivory Coast and Ghana - the two largest cocoa producing countries in the world. See more Selling pressure returns to the commodity market, cash flow is still looking for safe haven assets See more COMMODITY MARKET: Oil prices plunged, pulling MXV-Index down for the second consecutive session See more COMMODITY MARKET: Overwhelming buying force, MXV-Index increased for the 5th consecutive week continue
