Commodity Market: Crude Oil Price Falls Nearly 7%, Metals Are on Fire

The Vietnam Commodity Exchange (MXV) said that the world raw material market reacted strongly after US President Donald Trump announced the reciprocal tax policy.

The price board was flooded with red, the overwhelming selling pressure pushed the MXV-Index down 3% to 2,261 points. After just one session anchored above the 2,300 point zone, this event pushed the commodity price index to its lowest level since early March.

The energy commodity market has 4/5 items with sharp price decreases. Source: MXV

Pressure is mounting on the energy market as four out of five commodities have fallen sharply. OPEC+’s May oil production plan continues to “add fuel to the fire”, causing the crude oil market to slide further.

At the end of the session, Brent and WTI oil prices lost 6.42% and 6.64% to 70.14 USD/barrel and 66.95 USD/barrel, respectively. This is the deepest decline for Brent oil prices since August 1, 2022, and for WTI oil prices since July 11, 2022.

Similarly, the entire metal market was in red.

Commodity market of red metal group. Source: MXV

Silver prices plunged 7.73% to $31.97 an ounce. Meanwhile, platinum also fell sharply by 3.62% to $942.5 an ounce.

The decision to impose global reciprocal tariffs has investors worried that escalating trade tensions could lead to supply chain disruptions and higher production costs, reducing demand.

Meanwhile, the majority of demand for silver and platinum comes from the industrial manufacturing sector. Specifically, about 60% of silver demand is used in industries such as electrical and electronic equipment and solder alloys; while nearly 70% of platinum demand comes from the automotive and high-tech manufacturing sectors.

The base metals group was also not out of the deep downward trend. COMEX copper prices fell sharply by 4.21% to $10,645/ton, while iron ore extended its decline by another 0.94% to close at $101.84/ton.

Higher-than-expected reciprocal tariffs have eroded global growth expectations, putting further pressure on copper consumption prospects, with Citigroup predicting that copper prices could fall another 8-10% in the coming weeks.

Notably, although copper is not currently on the reciprocal tariff list, Washington is investigating the possibility of imposing separate tariffs on this item.

Source: https://hanoimoi.vn/thi-truong-hang-hoa-gia-dau-tho-roi-tu-do-gan-7-kim-loai-do-lua-697851.html