Oil prices reverse course and recover.

At the close of trading yesterday, world oil prices recovered just before the Christmas holiday, with WTI crude ending its previous three-day losing streak.

According to the Vietnam Commodity Exchange (MXV), green dominated the global raw materials market yesterday (December 24). Notably, on the trading board in the early morning of December 25, all five energy commodities increased in price, leading the overall market trend. Meanwhile, the metals market was relatively quiet due to the Christmas holiday, with lower trading volume compared to previous sessions. At the close of trading, the MXV-Index rose 0.8% to 2,207 points.

Thị trường hàng hóa hôm nay 25/12: Giá dầu đảo chiều hồi phục

MXV-Index

Oil prices reverse course and recover.

At the close of trading yesterday, the energy market was completely dominated by green, with world oil prices recovering just before the Christmas holiday, and WTI crude oil ending its previous three-day losing streak. Factors driving oil prices upward included forecasts of declining US crude oil and fuel inventories, along with news of China intensifying fiscal stimulus measures to revive its economy through a record bond issuance.

Energy price list

Yesterday's trading session ended early as major exchanges around the world took a break for the Christmas holiday. At closing prices around 2:00 AM on December 25th (Vietnam time), Brent crude oil rose 1.4% to $73.65 per barrel, while WTI crude oil also increased 1.24% to $70.1 per barrel.

Oil prices yesterday benefited from a decline in U.S. crude oil and fuel inventories last week, reflecting increased demand. According to a Reuters survey, U.S. commercial crude oil inventories are estimated to have fallen by 1.9 million barrels in the week ending December 20th. Meanwhile, gasoline and distillate fuel inventories also declined by 1.1 million barrels and 300,000 barrels, respectively. The weekly inventory report from the U.S. Energy Information Agency (EIA) was postponed from Wednesday to Friday (December 27th) due to a holiday.

In addition, the market received positive news about China's economic stimulus package, expected to be launched next year, increasing hopes for improved consumption and thus supporting oil prices in yesterday's trading session. According to Reuters, the Chinese government has also agreed to issue 3 trillion yuan (equivalent to $411 billion) of special treasury bonds next year. This would be the largest issuance ever and three times the amount issued this year, as the country intensifies fiscal stimulus to revive its weakening economy.

Accordingly, 1.3 trillion yuan will be allocated to subsidy programs for durable goods, allowing consumers to trade in old cars or equipment and buy new ones at discounted prices, as well as supporting large-scale upgrades for business equipment. In addition, the aforementioned support will be used for national strategic projects, such as the construction of railways, airports, agricultural land, and strengthening security in key areas.

Another 1 trillion yuan will be invested in new productive forces, including electric vehicle manufacturing, robotics, semiconductors, and green energy. The remainder of the stimulus package will be used to recapitalize the country's major state-owned banks, which are struggling with shrinking profit margins, weakening returns, and rising levels of bad debt.

The metals market is quiet.

According to MXV, the metals market was relatively quiet at the end of yesterday's trading session, with lower trading volume compared to previous sessions due to the impact of the Christmas holiday in the US. The market closed early on the holiday, so commodity prices will be calculated up to 2:00 AM on December 25th, Vietnam time.

Metal price list

For precious metals, silver prices rose approximately 0.3% to $30.28 per ounce, while platinum also increased by more than 1% to $960.5 per ounce. Precious metal prices continued their upward trend after key inflation data released last weekend showed signs of cooling down. Specifically, according to data released by the Bureau of Economic Analysis of the U.S. Department of Commerce, the core Personal Consumption Expenditures (PCE) index, excluding energy and food price fluctuations, rose 2.8% year-on-year in November, 0.1 percentage point lower than forecast. Compared to the previous month, the core PCE index only increased 0.1% in November, 0.1 percentage point lower than forecast and a slowdown from the 0.3% increase in October. This is also the lowest level in the past seven months.

The fact that the Federal Reserve's preferred measure of inflation cooled down faster than expected has somewhat eased recent concerns that the Fed would delay cutting interest rates due to signs of rising inflation. This has helped money gradually flow back into precious metals.

For base metals, iron ore prices fell 0.2% to $101.09 per ton despite China signaling fiscal stimulus through plans to issue 3 trillion yuan in special treasury bonds next year.

Iron ore prices, which are highly sensitive to China's economic stimulus measures, still fell yesterday due to pressure from consumption factors. According to a report by the China Metallurgical Industry Planning and Research Institute (MPI), China's steel consumption is expected to reach 863 million tons this year, a 4.4% decrease from last year. Next year, steel consumption is projected to decline further by 1.5% to 850 million tons. This declining steel consumption outlook has negatively impacted the outlook for iron ore, a crucial raw material for steelmaking, thus putting downward pressure on iron ore prices yesterday.

Furthermore, the latest report from the World Steel Association shows that global steel production fell to 146.8 million tonnes in November, a 3% decrease compared to the previous month.

Prices of some other goods