Crude oil falls to its lowest level in over a month.

Global commodity markets experienced significant volatility at the start of the week's trading session as selling pressure spread across many product groups, particularly energy.

The MXV-Index fell below the 2,900 point mark. Source: MXV

At the close of trading on May 25, the MXV-Index fell nearly 1%, dropping below the 2,900-point mark amidst continuous shifts in global investment flows driven by geopolitical signals and monetary policy expectations.

According to the Vietnam Commodity Exchange (MXV), the global oil market is under strong downward pressure due to positive signals regarding the progress of negotiations between the US and Iran. This has eased concerns about the risk of oil supply disruptions in the Middle East. Investors are quickly reducing the geopolitical risk premium that had been strongly reflected in oil prices during the previous period of escalating tensions.

From the start of the session, selling pressure returned to the energy market. In addition, reduced liquidity due to the Memorial Day holiday in the US and the Spring Bank Holiday in the UK also contributed to greater volatility in oil prices amid geopolitical developments.

World crude oil prices over the past three months. Source: MXV

At the close of trading, both major crude oil prices fell to their lowest levels in over a month. Brent crude dropped nearly 7.2%, to just under $96.1 per barrel; while WTI crude fell nearly 7%, to $89.85 per barrel.

Domestically, the synchronized rollout of E10 biofuel from June 1st is being accelerated by leading enterprises in terms of blending systems, warehousing, and distribution networks. According to MXV, expanding the use of biofuels not only contributes to reducing emissions but also helps increase energy security proactively in the context of a constantly fluctuating global market.

In the metals group, the silver market saw more positive developments as buying pressure returned after a period of sharp correction. Closing early on May 25th, the July silver futures price rose nearly 3%, to $78.4 per ounce.

The amount of physical silver held by global silver funds. Source: MXV

According to MXV, the market's momentum stems from expectations that Middle Eastern tensions may ease if the US and Iran reach an agreement to extend the ceasefire. Improved trading sentiment has driven capital back into precious metals, especially as investors maintain a demand for risk hedging.

This trend is also clearly reflected in the activity of investment funds. On May 25th, global silver ETFs increased their holdings by 36 tons, bringing the total to nearly 28,000 tons, indicating that capital is showing signs of returning to the silver market.

However, MXV believes that the outlook for silver remains heavily dependent on geopolitical developments and the monetary policy of the US Federal Reserve.

Source: https://hanoimoi.vn/dau-tho-xuong-muc-thap-nhat-trong-hon-mot-thang-972133.html