Oil prices continue to 'heat up'

Commodity market today, October 4: Oil prices continue to 'heat up', corn prices break the 4-session consecutive increase streak Commodity market today, October 4: Iron ore prices hit their highest level, cocoa prices plummet

In particular, investors paid special attention to the crude oil market with 5 consecutive trading sessions of increase and was the main driving force leading the positive trend for the whole market. Meanwhile, in the industrial raw materials market, many commodities suddenly plummeted in price, especially two coffee commodities. Closing, the MXV-Index increased by 0.32% to 2,259 points.

Thị trường hàng hóa hôm nay ngay 8/10/2024: Giá dầu tiếp tục ‘nóng’

MXV-Index

World oil prices rise sharply due to risk of supply disruption

On the first trading day of the week (October 7), the market witnessed a sharp increase in world oil prices due to concerns about the spread of conflict in the Middle East and the possibility of disruptions in export and exploitation activities from the US. At the end of the session, WTI crude oil increased by 3.71% to 77.14 USD/barrel, while Brent oil increased by 3.69% to 80.93 USD/barrel.

Energy price list

Tensions in the Middle East have escalated after Hezbollah, an Iran-backed group in Lebanon, launched a rocket attack on the Israeli city of Haifa. A ballistic missile attack from Yemen targeting Tel Aviv was also reported. In response, Israel appears to be readying to expand its ground incursion into southern Lebanon. Concerns that the United States, Israel’s close ally and a direct opponent of Iran, could be drawn into a wider war have pushed oil prices higher.

Given the situation in the Middle East, Goldman Sachs Bank believes that Brent oil prices could reach $90/barrel if Iran's supply is affected by 2 million barrels/day, or $85/barrel if supply is reduced by 1 million barrels/day. However, the bank also noted that the conflict is unlikely to affect Iran's production and that spare supply from OPEC+ could help cool the market.

On the supply side, production in the Gulf of Mexico, one of the top crude oil producing regions in the US, continues to be on alert as Hurricane Milton moves across the region. Tropical Storm Milton strengthened over the weekend and is expected to make landfall along the west coast of Florida later this week after passing through parts of the Gulf of Mexico. Chevron Energy has shut down its Blind Faith platform in the Gulf of Mexico and evacuated all employees from its facilities in the area.

In response to rising oil prices, Saudi Arabia, the world’s largest oil exporter, has increased its official selling prices to Asia. Saudi Aramco raised its Arab Light crude price by $0.90 a barrel for November deliveries, above market expectations of $0.65 a barrel, bringing the premium to the Dubai/Oman benchmark to $2.20 a barrel.

Prices of some other goods