Oil prices fall sharply after White House announcement

(Chinhphu.vn) - According to the Vietnam Commodity Exchange MXV, cautious sentiment prevailed in the world raw material market during the trading session on July 14. At the close, the MXV-Index fluctuated around 2,230 points. Notably, red suddenly returned to the energy market with 4/5 commodities simultaneously decreasing in price.

Oil prices fell sharply

According to MXV, strong selling pressure dominated the energy market yesterday as investors were cautious about US President Donald Trump's latest statement on tax policy.

At the end of the trading session, Brent oil price stopped at 69.2 USD/barrel, corresponding to a decrease of 1.63%. WTI oil price also recorded a decrease of up to 2.15%, falling to 66.98 USD/barrel.

At a meeting with North Atlantic Treaty Organization (NATO) Secretary General Mark Rutte in Washington on July 14, US President Donald Trump announced that he would provide weapons to NATO member countries, including the transfer of Patriot air defense missile systems to Ukraine.

In addition, yesterday, Mr. Trump announced a 100% tax on countries that trade with Russia. Accordingly, Mr. Trump also expressed disappointment about the not-so-optimistic negotiation situation surrounding the Russia-Ukraine conflict. This made the market worried about escalating political tensions in Eastern Europe, pushing oil prices up in the morning trading session.

However, President Trump's announcement of a 50-day negotiating period before imposing secondary tariffs on Russian crude oil customers somewhat contradicted many market expectations of immediate sanctions.

At the same time, many opinions say that although the secondary tariff rate is warned to be up to 100%, this measure is difficult to apply because the two largest customers of Russian crude oil are China and India. Imposing high tariffs on imported goods from these two countries could both bring inflation back to the US economy and escalate tensions in trade relations.

In addition, global trade tensions continued to put pressure on oil prices in yesterday's trading session, as a wave of protests against the US's new tariff policies spread across Europe. Many EU leaders criticized the White House for its lack of goodwill in negotiations, and warned of retaliation if Washington implemented a 30% tax on goods exported from the European Union.

Sugar prices continue to fluctuate in a downward trend

According to MXV, the divergence and tug-of-war were clearly evident in the industrial raw materials market in yesterday's trading session. At the close, the MXV-Index of industrial raw materials - an index measuring price fluctuations of the group - increased by 2% to 2,571 points, leading the upturn of the entire market. However, the two sugar products continued to attract attention when they turned down.

At the end of the session, the price of raw sugar 11 for October delivery decreased by 1.63% to 359 USD/ton. The October white sugar contract also decreased by 1.84% to 470 USD/ton.

MXV believes that weak consumption is still an important factor that makes it difficult for the sugar market to increase prices again. According to experts, the sugarcane harvest index in India is at a positive level and the weather in Thailand is currently quite favorable for the development and growth of sugarcane. This contributes to maintaining the world supply.

Update on the export situation in Brazil shows that, according to data from the Foreign Trade Department (Secex), as of July 4, Brazil exported 677,300 tons of sugar and molasses, with a total revenue of 281 million USD. On average, 169,300 tons were exported per day, earning 70.3 million USD, with an average price of 415 USD/ton. Compared to July 2024, the export volume increased by 3%, but the average daily value decreased by 7.1% and the average price per ton decreased by 9.8%, compared to 460 USD/ton in the same period last year.

According to the weather forecast, southern India will receive rain this week and next week; while in Thailand, the hot and dry conditions will also soon end as rains are likely to return next week, helping to improve soil moisture and support sugarcane crops.

According to the Vietnam Sugarcane and Sugar Association (VSSA), by the end of May, sugar factories across the country had basically completed the sugarcane pressing season, with a total output of more than 1.2 million tons of sugar. However, domestic sugar consumption is facing many difficulties, causing inventories to exceed 70% of total output - a record level in the history of the industry.

Source: https://baochinhphu.vn/gia-dau-giam-manh-sau-thong-bao-tu-nha-trang-102250715090121546.htm