World oil prices rise nearly 3% due to supply concerns

The Vietnam Commodity Exchange (MXV) said that the world raw material market was relatively volatile in the first trading session of June. The energy market continued to attract attention when the entire price list was in the green, in which two crude oil products increased by nearly 3% despite the OPEC+ plan to increase production. The opposite trend was the agricultural market, notably the price of soybeans continued to weaken into the second session. Closing, the MXV-Index increased by 1.5% to 2,182 points.

Giá dầu thế giới tăng gần 3% do lo ngại nguồn cung

MXV-Index

Oil prices rebound

At the end of the first trading session of the week, the energy market witnessed a strong increase in all 5 commodities in the group. In which, the price of two crude oil commodities simultaneously increased by nearly 3% despite the fact that the OPEC+ group will continue to increase production in July.

Specifically, WTI oil price recorded an increase of 2.85%, reaching 62.52 USD/barrel. Meanwhile, Brent oil price also increased from 62.78 USD/barrel to 64.63 USD/barrel, equivalent to an increase of up to 2.95%.

Energy price list

Last week, the Organization of the Petroleum Exporting Countries and its partners (OPEC+) officially decided to increase production for July by 411,000 barrels per day for the third consecutive month. Initial predictions of this increase in production have raised concerns about a global supply glut as the situation of some member countries exceeding their quotas has not been resolved.

However, according to analysts, many investors had expected an even higher production increase than the current one. Goldman Sachs predicted that August could become the fourth consecutive month that OPEC+ increased production by 411,000 barrels/day, with the reason given being the cyclical increase in consumption in the coming summer, which is also the peak travel season for Americans.

Last week, both the US Energy Information Administration (EIA) and the American Petroleum Institute (API) reported a sharp decline in US commercial crude oil inventories, while gasoline inventories also fell last week. This could lead the market to expect the start of a new cycle of fuel consumption growth in the US.

In addition, severe wildfires in three Canadian provinces, Manitoba, Saskatchewan and especially Alberta, have forced many oil companies to temporarily suspend operations. According to initial estimates, this could cause Canada's production to decrease by about 7% (equivalent to 344,000 barrels/day).

Meanwhile, the weakening of the greenback also supported the strong increase in oil prices. Accordingly, the US Dollar Index decreased by 0.63% in yesterday's session, making crude oil more attractive to investors holding other currencies.

Soybean prices weaken nearly 1%

According to MXV, red dominated the agricultural market in yesterday's trading session (June 2). In particular, soybean prices opened the new month in red, down 0.79% to $379/ton.

Agricultural product price list

According to the USDA Export Deliveries report, soybean deliveries for the week ending May 29 were 268,343 tonnes, up from the previous week but still below the 361,000 tonnes a year ago. While consistent with the current situation, this figure is not enough to support prices. The market focus is on the fact that China, the largest importer of US soybeans, has completed receiving its final soybean shipment for the 2024-25 crop year, with no new orders for the 2025-26 crop year.

In addition, the weather conditions in the US continue to be favorable with mild temperatures, rain and sunshine evenly distributed over the next 10-14 days, creating ideal conditions for the initial growth stage of soybeans. The market is currently predicting that the US soybean planting progress has reached 85% of the plan, higher than the 5-year average and the same period last year, while crop quality this week is predicted at 67% good/excellent, reinforcing expectations of a bumper crop.

The only bright spot was the US Census’ April oil crush data, which came in at a record 202.3 million bushels, along with lower-than-expected soybean oil inventories, reflecting strong domestic demand. However, these factors were not enough to reverse the downward trend as the market remained dominated by a lack of demand momentum and favorable weather conditions.

Prices of some other goods