Middle East tensions dominate commodity markets.

The global commodities market last week was driven primarily by geopolitical developments in the Middle East.

The MXV-Index rose 1.85% to 2,926 points last week. Source: MXV

The sharp rise in oil prices has had a ripple effect on many commodity groups, especially agricultural products and biofuels, helping the MXV-Index increase by 1.85% to 2,926 points.

According to the Vietnam Commodity Exchange (MXV), in the week from April 27th to May 1st, the energy sector continued to lead the market, with the price index increasing by 5% compared to the previous week, reaching 4,605 ​​points at the end of the week. Crude oil prices recorded a significant increase due to concerns about supply disruptions.

The market was forced to readjust its supply expectations, driving oil prices sharply higher for much of the week. As of April 30, Brent and WTI oil prices had risen by approximately 8–11% compared to the end of the previous week. Notably, Brent prices at one point reached $126.4 per barrel – the highest level since March 2022.

Fuel inventories have dropped sharply. Source: MXV

Besides geopolitical factors, supply and demand data also contributed to the upward trend. According to the US Energy Information Agency (EIA), commercial crude oil inventories fell by more than 6.2 million barrels, while gasoline and distillate fuel inventories also declined sharply.

However, towards the end of the week, the market cooled down somewhat as Iran signaled its readiness to resume negotiations. Oil prices subsequently adjusted slightly downward by 2–3% in the first trading session of May, but still ended the week on an upward trend, with Brent reaching $108.17/barrel and WTI at $101.94/barrel.

Price trends of soybean commodities. Source: MXV

The rapid increase in energy prices quickly spread to agricultural products through the biofuel channel. With oil prices remaining high, demand for alternative sources such as vegetable oils increased, driving up the prices of many commodities.

Domestically, the market is showing mixed trends. The price of soybean meal for May delivery remains around 12,000 VND/kg, while an estimated supply of nearly 800,000 tons could create short-term oversupply pressure.

Source: https://hanoimoi.vn/cang-thang-trung-dong-chi-phoi-thi-truong-hang-hoa-748268.html