Commodity markets: Energy group sees overwhelming buying power

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In the trading session on September 23, Brent oil price climbed to 67.63 USD/barrel, up 1.59%; while WTI oil price also reached 63.41 USD/barrel, corresponding to an increase of up to 1.81%.

Oil rig in Texas, USA. (Photo: THX/TTXVN)

After four consecutive sessions of decline, global commodity markets closed the trading session on September 23 in the green. The MXV-Index inched up 0.6% to 2,232 points, mainly thanks to the pull from the energy market.

The energy market on September 23 witnessed overwhelming buying power when all 5 products in the group increased sharply.

Specifically, Brent oil price climbed to 67.63 USD/barrel, up 1.59%; while WTI oil price also reached 63.41 USD/barrel, corresponding to an increase of up to 1.81%.

World oil prices ended a five-session decline in yesterday's trading session, as concerns about surging supply temporarily eased.

On the other hand, coffee remains under pressure from unpredictable developments in trade policy and favorable weather for the crop only makes the prospect of oversupply more apparent.

Highlighting on September 23 was the news that crude oil exports from the autonomous Kurdish region in northern Iraq continued to be disrupted as two key businesses in the region, Norway's DNO and Britain's Genel, required debt repayment guarantees.

Currently, the Kurdish autonomous region government owes manufacturers about $1 billion, of which DNO's overdue debt is estimated to be about $300 million.

DNO executive chairman Bijan Mossavar-Rahmani said he had proposed "easy solutions that can be agreed quickly" but did not give further details.

Previously, some news sites reported on an agreement between the Iraqi federal government, the Kurdish autonomous region and oil companies here to restart oil exports from northern Iraq to Türkiye.

The deal is expected to add 230,000 barrels per day to the supply of OPEC's second-largest oil producer, thereby increasing pressure on world oil prices.

However, the market reaction after the news of the deal being disrupted showed some haste, as commented by Phil Flynn, senior analyst at Price Futures Group: “The market sold off immediately after reports of a deal in Kurdistan, but the fact that there is no deal means that oil is not coming back to the market yet.”

This has fueled the rise in oil prices, especially in the context of geopolitical tensions that still pose a risk of supply disruption from Russia and the Middle East.

In another development, the US natural gas market recorded a recovery after 5 consecutive sessions of decline. At the end of the trading session, the natural gas contract for November delivery on the NYMEX floor increased by 1.39% to 3.14 USD/MMBtu.

The return of hot weather forecasts has led to expectations about the cooling electricity consumption needs of American people as well as the input fuel needs of power plants here.

Closing yesterday's trading session, the industrial raw materials market recorded overwhelming selling pressure, especially for two coffee products.

Coffee harvest of Coffee Company 706 (Vietnam Coffee Corporation) in Ia Grai ( Gia Lai ). (Photo: Vu Sinh/VNA)

Specifically, Arabica coffee prices lost 4.7% to 7,719 USD/ton while Robusta coffee prices also decreased nearly 3.8% to 4,118 USD/ton.

According to MXV, the main reason for the sharp drop in coffee prices yesterday was due to unpredictable fluctuations in tariffs and positive weather developments.

Although the US Federal Reserve (Fed) has cut interest rates by 0.25%, money continues to move away from the commodity market to seek safe haven assets such as gold and silver, creating downward pressure on prices of many commodities, including coffee.

In addition, the trade outlook between the US and Brazil is showing positive signs when US President Donald Trump announced that he will meet with Brazilian President Lula da Silva next week, thereby bringing with it the expectation that Brazilian coffee products may have their taxes relaxed.

At the same time, favorable weather conditions have also supported the development of coffee plants. In Brazil, the main coffee growing regions have begun to receive rain again, although the amount of rain is still limited.

According to World Weather Inc., the dry conditions are likely to return from this weekend into early next week, with daily rainfall ranging from traces to 6 mm, with some areas possibly reaching 10 mm. Growers are somewhat reassured by this development, although the water shortage has not completely ended.

In Vietnam, rainfall is forecast to be higher than average in key coffee growing regions next week due to super typhoon Ragasa.

World Weather Inc. predicts that showers and thunderstorms are likely to occur daily in the Central Highlands and Quang Tri over the next 10 days, creating favorable conditions for coffee fruit development.

Much of the flooding in the North is also expected to ease by the end of this week if the storm moves as forecast, however, too much rain also poses many risks to the crop season.

In the domestic market, end-of-season coffee transactions are sparse due to limited old inventory. Most agents and farmers tend to hold on to their goods, waiting for prices to rise back above VND120,000/kg before considering selling./.

Source: https://baolangson.vn/thi-truong-hang-hoa-nguyen-lieu-nhom-nang-luong-chung-kien-luc-mua-ap-dao-5059920.html