Oil and copper prices fall sharply as the US dollar soars

The Dollar Index hit a multi-month high after the Fed's statement, putting profit-taking pressure on global energy and metals markets.

Stronger US dollar puts pressure on commodity prices

At the end of the trading session on November 4, the commodity market witnessed a decline in key commodities, especially crude oil and copper. According to the Vietnam Commodity Exchange (MXV), the main reason came from the strong recovery of the USD, promoting widespread profit-taking activities.

Specifically, the Dollar Index climbed to 100.19 points - the highest level since late May. This increase was fueled by the speech of the Chairman of the US Federal Reserve (Fed) Jerome Powell, in which he affirmed that there would be no more interest rate cuts in the rest of the year. Tight monetary policy helps the USD maintain its value, but also makes commodities priced in this currency more expensive for international investors.

Energy market turns down

The recovery in oil prices from last weekend was halted. At the end of the session, WTI crude oil prices fell 0.8% to 60.56 USD/barrel, while Brent crude oil prices fell 0.77% to 64.34 USD/barrel.

Source: MXV

In addition to the pressure from the US dollar, concerns about the health of major economies also negatively affected the outlook for energy demand. The Institute for Supply Management (ISM) reported that the US manufacturing PMI continued to weaken in October. Similarly, in China, both the PMI published by S&P Global and the National Bureau of Statistics (NBS) recorded a decline, with the NBS index falling to 49 points.

In contrast to the trend of crude oil, natural gas prices in the US recorded a consecutive increase for five sessions. On the NYMEX floor, natural gas prices increased by 1.8% to 4.34 USD/MMBtu, the highest level since March.

Copper prices under double pressure

In the metals market, copper prices recorded a fourth consecutive decline, falling to a three-week low. Specifically, COMEX copper prices fell 2.4% to $10,909.6/ton, and LME copper prices fell 1.8% to $10,663.5/ton.

Source: MXV

In addition to the impact of the USD, the copper market is also under pressure from negative signals in China, the world's largest copper consumer. The decline in the manufacturing PMI index, along with China's removal of electric vehicles (EVs) from the list of strategic industries in the 2026-2030 five-year plan, has raised concerns about future consumption demand.

Tight supply curbs decline

However, the decline in copper prices was partly restrained by supply concerns. The world’s largest copper producer, Chile’s Codelco, cut its 2025 production forecast to 1.31-1.34 million tonnes. Meanwhile, other major mining groups such as Glencore and Anglo American also reported copper production in the first nine months of the year down 17% and 9%, respectively, compared to the same period last year.

Source: https://baolamdong.vn/gia-dau-va-dong-giam-manh-do-dong-usd-tang-vot-400399.html