MXV-Index moves sideways, tug-of-war continues in the commodity market

Selling pressure dominated the energy market in yesterday's trading session. In the world crude oil market, information about supply from the OPEC+ group spread, causing great pressure, causing prices to reverse and fall sharply.

At the end of the session, Brent crude oil prices fell 1.96% to $66.12/barrel. Meanwhile, WTI crude oil futures for June delivery also fell 2.2% to $62.27/barrel. Previously, oil prices had recovered nearly 2% after new tensions in US-Iran relations.

The main reason for the decline in yesterday's trading session was market information about the possibility of an unusual increase in production by OPEC+. According to many sources, some member countries have proposed to increase production in June. Previously, in May, OPEC+ "pumped" 411,000 barrels/day, three times the original plan. In April, the group also increased production by 138,000 barrels/day. These developments have raised concerns about excess supply in the market, thereby pushing oil prices down.

In addition, the fact that some OPEC+ member countries have repeatedly exceeded their allocated crude oil production quotas has reinforced investors’ concerns, despite OPEC+ policies requiring cuts to excess production. Iraq and Kazakhstan are the two most prominent violators, although both have pledged to adjust their output as required by OPEC+. Data from Kpler shows that Iraq’s oil exports continued to increase in April, despite a promise to reduce 50,000 barrels per day from 4.2 million barrels per day. Meanwhile, Kazakhstan’s output fell only 3% in the first half of April, remaining at 1.47 million barrels per day – 129,000 barrels above its quota.

Also yesterday, the US Energy Information Administration (EIA) released a weekly report showing that commercial crude oil inventories increased by about 244,000 barrels in the week ending April 18, contrary to previous predictions of a decrease, thereby further strengthening the downward momentum of oil prices. The group of PMI indexes in the US announced on the day also failed to reassure the market about the health of the world's largest economy. Although the PMI index of the manufacturing sector unexpectedly increased, it was accompanied by a decrease in the remaining PMI indexes.

According to MXV, the prices of two precious metals improved in yesterday's trading session thanks to hopes of easing US-China tensions. At the end of the session, the world silver price extended its increase by 1.95% to 33.55 USD/ounce, while platinum recovered by 1.81% to 979.6 USD/ounce.

Recently, US media reported that the administration of US President Donald Trump is considering reducing tariffs on imported goods from China to about 50-60% while waiting for negotiations with Beijing. This is a positive move from the White House to reduce tensions between the two countries in recent times.

In the base metals group, COMEX copper prices unexpectedly reversed when concerns about supply shortages in the US were temporarily eased. Specifically, the price of COMEX copper contracts for May delivery decreased by 0.71% to 10,678 USD/ton.

On the other hand, the price of 1.65% iron ore rose to $100.2/ton despite concerns about demand as China's real estate market has yet to show clear signs of recovery.

Source: https://baochinhphu.vn/mxv-index-di-ngang-dien-bien-giang-co-tiep-tuc-tren-thi-truong-hang-hoa-102250424092954874.htm