Oil prices weaken despite positive signals from the US economy
According to MXV, red returned to the world energy market in yesterday's trading session. In particular, the prices of both main crude oil products decreased slightly by less than 1%. Specifically, Brent oil price decreased by 0.45%, down to 68.8 USD/barrel; while WTI oil price recorded a decrease of 0.67%, stopping at 67 USD/barrel.
The market's attention was largely focused on the US labor market indicators released yesterday. Accordingly, most of the data showed positive signals, especially the unemployment rate which decreased in June. However, many investors are concerned that the positive information about the labor market will make the US Federal Reserve (Fed) continue to be cautious and "hesitant" in making the decision to cut interest rates. Previously, the Fed also expressed concern about the risk of inflation rising again in the US under the impact of new tariff policies from the White House.
This puts the current energy market under pressure from three main factors. First, the latest report from the US Energy Information Administration (EIA) continues to raise concerns about the demand for gasoline in the US in the coming time. Second, the possibility that OPEC+ will increase production sharply in August increases the risk of oversupply in the market. Third, uncertainties related to the US economic outlook after July 9, in the context of the super bill on taxes and budget spending of the Donald Trump administration preparing to be passed.
In addition, the relationship between the US and Iran is also making positive progress. According to Axios, negotiations between the US and Iran may resume next week in Oslo (Norway). The resumption of negotiations is expected to be an important cooling signal, contributing to the decline in oil prices in the market. However, the US and Iran still have many deep disagreements, not only related to Tehran's nuclear program but also on other regional issues.
In another development, natural gas prices on the NYMEX floor reversed course and fell in yesterday's trading session, down to $3.41/MMBtu, equivalent to a decrease of 2.26%. Due to the US Independence Day holiday (July 4), the US Energy Information Administration's (EIA) weekly report on natural gas only updated inventory data. However, this is still the main factor putting pressure on prices as the report continued to record that natural gas inventories in the US maintained a continuous upward trend.
Sugar prices have a technical adjustment session going up.
Contrary to the general market trend, the industrial raw materials group ended yesterday's trading session with positive buying power. The main driving force supporting the group came from the sugar market, when the price of raw sugar 11 increased sharply by 5.13% to 361 USD/ton, while the price of white sugar also recorded an increase of 4.95%, to 481.5 USD/ton.
Technically, after many sessions of decline, raw sugar price 11 reacted positively when touching the technical support zone around 340 - 350 USD/ton, causing the price to bounce back strongly.
In addition, the sugar market yesterday reacted strongly to information about frost in Brazil and the risks of damage to sugarcane fields in this country. In addition, information about Brazil's official approval of the E30 program - increasing the ethanol blending ratio in gasoline to 30% also contributed to supporting the price of this commodity, thereby accelerating the trend of shifting production from sugar to ethanol at factories.
However, the sugar market has been under pressure for a long time due to a combination of factors. Sugarcane crushing output in the Central-South region of Brazil, although better than expected, is still lower than the same period last year. In addition, sugar production in Thailand far exceeded forecasts, while plunging energy prices have caused ethanol prices to be lower than sugar prices, making factories reluctant to switch to ethanol production.
Source: https://baochinhphu.vn/tam-ly-than-trong-quay-lai-thi-truong-hang-hoa-nguyen-lieu-the-gioi-102250704091109981.htm
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