📋 Tender Overview
Green dominated the raw material market in the August 10 session. The energy group recorded an outstanding increase, in which crude oil prices closed the session up nearly 5%. MXV-Index accordingly extended its upward momentum for the 5th consecutive session, surpassing the 2,800 point mark. Download Crude oil market reacted strongly to developments in Hormuz After falling more than 7% last week, world crude oil prices increased sharply in the first session of the week (August 10) when expectations of soon clearing the Strait of Hormuz weakened. Iran said talks with Oman on the new maritime route through Hormuz had made further progress, but some technical issues remained unresolved. Tehran also asked the US to compensate for damage, lift sanctions and end military threats before Hormuz is reopened. The US also made its own request. President Donald Trump asked Iran to compensate for the damage and casualties he said Tehran caused in conflicts, attacks and protests. Meanwhile, Iranian Foreign Minister Abbas Araqchi said the two countries are not currently negotiating directly and Tehran is not ready to return to the negotiating table, believing that Washington is still violating the interim agreement in June. These disagreements make the ability of transport operations through Hormuz to return to normal soon unclear. Concerns about supply therefore quickly returned to the oil market. In the Middle East, Houthi forces announced an attack on Saudi Aramcos Jazan oil refinery with drones. The plant has a capacity of about 400,000 barrels/day. The fire was extinguished and no casualties were reported, but the restart was postponed to August 30 after two attacks in recent weeks. UAEs ADNOC also said 15 of its ships had been attacked while passing through Hormuz since the conflict broke out. In Russia, Ukraines attacks on the Taneco oil refinery and the ZapSibNeftekhim petrochemical complex continue to increase concerns about energy supplies. Meanwhile, the US Strategic Petroleum Reserve (SPR) decreased by about 6.1 million barrels last week, to 298.7 million barrels, the lowest level since January 1983. The amount of oil reserves available for use is therefore also narrowed, in case the market faces a prolonged supply disruption. On the contrary, supply from the Organization of Petroleum Exporting Countries (OPEC) somewhat limits the increase. According to a Reuters survey, the output of 11 OPEC members in July increased by about 1.17 million barrels/day compared to the previous month, to 19.85 million barrels/day, mainly thanks to Iraq and Kuwait restoring exploitation. However, output is still significantly lower than the quota, showing that OPECs ability to add more supply is still limited. According to data from the Vietnam Commodity Exchange (MXV), at the end of the August 10 session, Brent price increased by 4.17 USD, equivalent to 4.99%, to 87.72 USD/barrel. WTI price increased by 3.95 USD, equivalent to 5.05%, to 82.13 USD/barrel. This is the largest percentage increase for both items since July 29. Download In the futures market, prices of near futures contracts also increase faster than far futures contracts. The price structure of Brent and WTI continues to be in a state of backwardation, with the spread between near and far futures widening. This development shows that the market is paying a higher price to get oil soon, instead of waiting until later months. In the options market, commercial businesses also need to protect against the possibility that transportation activities through Hormuz continue to be disrupted. Thus, concerns about supply are being reflected not only in oil prices but also in risk hedging activities in the derivatives market. According to Mr. Do Xuan Quy, Deputy General Director and Co-Founder of 3D Commodity Trading Joint Stock Company - Business Member No. 072 of MXV, considering the basic factors at this mornings session (August 11), the crude oil market is still inclined to an uptrend. WTI prices are around 82.04 USD/barrel and Brent prices are around 87.88 USD/barrel, both maintaining high levels after a strong increase at the beginning of the week. Mr. Quy believes that supply risks in the Middle East, especially uncertainties related to the Strait of Hormuz, continue to create a risk premium for oil prices. However, the market can still experience strong fluctuations when the global demand outlook and the possibility of improved supply are still factors putting pressure on prices. In the short term, crude oil still has the advantage of increasing, but the current price range is quite sensitive to geopolitical information. If supply risks continue to persist, prices can maintain an uptrend. On the contrary, any cooling signal in the Middle East can cause prices to adjust quickly, Mr. Quy said. Dong said. Mixed with the energy market in the first session of the week was the sugar market, which extended its upward streak to the 7th consecutive session amid growing concerns about global supply. Unfavorable weather in major growing areas, along with Brazil and India devoting an increasing proportion of sugarcane to ethanol production, is raising the possibility of sugar export sources shrinking in the 2026-2027 crop year. Sugar 11 for October delivery increased 0.12%, to363.1 USD/ton, the highest level in 10 months. White sugar price increased 0.54%, to 506.1 USD/ton, the highest in 15 months. See more COMMODITY MARKET: MXV-Index increased for the third consecutive session, energy groups pulled the market See more COMMODITY MARKET: MXV-Index decreased for the third consecutive session, retreating to 2,727 points See more Selling pressure returned to the commodity market, line Money still finds safe haven assets. Read more COMMODITY MARKET: Oil price plunge drags MXV-Index down for the second consecutive session
