Commodity Market: Oil Price Lowest in the Week, Coffee Jumps

The energy market was the focus of investors' attention when 4/5 commodities closed in the red, while the prices of two coffee commodities recovered strongly.

The Vietnam Commodity Exchange (MXV) said that at the end of yesterday's trading session, selling pressure still dominated, causing the MXV-Index to weaken 0.1% to 2,157 points.

That color dominates the energy group commodity market. Source: MXV

The energy market witnessed red dominating the price list with 4/5 commodities simultaneously weakening.

In particular, Brent oil price fell to its lowest level in the past week, stopping at 68.8 USD/barrel, corresponding to a decrease of 1.31%, WTI oil price was also not out of the trend when it lost more than 1.5% to 66.29 USD/barrel.

The main reason for pressure on the oil market yesterday came from the decision of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to continue maintaining the plan to increase production by 547,000 barrels/day in September.

Following this latest move, OPEC+ has completed the reversal of all production cuts implemented in 2023, with a total scale of up to 2.2 million barrels/day.

In addition, OPEC+ also announced an additional production increase for the UAE, bringing the total increase to 2.5 million barrels/day, equivalent to about 2.4% of current global crude oil demand.

Industrial raw material commodity market recovers. Source: MXV

Meanwhile, the industrial raw materials group recorded a bright spot thanks to the strong recovery of coffee prices.

Specifically, Arabica coffee prices increased by more than 1.5% to 6,361 USD/ton, while Robusta coffee prices jumped nearly 3% to 3,421 USD/ton - the highest level in many recent sessions.

According to MXV, the increase in world coffee prices was strongly boosted by the continuous appreciation of the Brazilian real in the last two sessions, increasing by a total of 1.8% against the USD. This made the country's coffee exports less attractive, thereby creating a push for prices.

Along with that, Brazilian farmers' cautious selling mentality due to low domestic prices further tightens supply.

The shortage of supply is not only happening in Brazil. In Vietnam, farmers are also reluctant to sell because domestic prices are not attractive enough. This makes purchasing activities difficult.

Recorded this morning, August 5, domestic coffee prices fluctuated around 99,700 - 100,500 VND/kg, an increase of 200 - 500 VND/kg compared to yesterday.

Source: https://hanoimoi.vn/thi-truong-hang-hoa-gia-dau-thap-nhat-tuan-ca-phe-bat-tang-711499.html