The energy sector attracted special attention from investors as the price of two crude oil products jumped 12-13% - extending the increase into the second week. Meanwhile, in the industrial raw material market, sugar prices fell to their lowest level in the past 4 years.
Oil prices surge to highest level in more than 4 months
At the end of the last trading week, the energy market witnessed a strong increase in most of the key commodities in the group. In particular, oil prices extended their increase to the second consecutive week with the main driving force from geopolitical fluctuations. Specifically, WTI oil prices skyrocketed by more than 13%, reaching 72.9 USD/barrel - the highest level in more than 4 months, while Brent oil also recorded an increase of more than 11%, reaching 74.23 USD/barrel.
The main driver of the oil price increase last week was the escalating geopolitical tensions in the Middle East. Tensions between Israel and Iran that erupted over the weekend raised concerns about the risk of disruption to oil supplies, especially in key shipping routes such as the Strait of Hormuz, an important oil export route for many Gulf countries.
In addition, the unexpected move by the US government to withdraw staff from the Embassy in Baghdad (Iraq) and several other Middle Eastern countries, and to prepare evacuation plans from diplomatic agencies due to increased security risks, has further increased uncertainty in the oil market.
Previously, the relationship between the US and Iran, Iraq's neighbor, has been strained again over Tehran's controversial nuclear program. The two countries have not been able to find common ground on Iran's uranium enrichment activities, and the reactions from both sides are showing a gradual loss of patience and desire to move towards a new agreement to replace the agreement reached in 2018.
If talks between the two sides break down and a new deal cannot be signed, supplies from Iran, OPEC's third-largest crude producer, will continue to be severely affected by White House sanctions.
In addition, positive signals from the high-level trade talks between the US and China in London also contributed to strengthening market sentiment in the first half of the week. According to the agreement just reached, China will remove export barriers on rare earths and magnets to the US, while the US will continue to allow Chinese students to study at American universities; at the same time, the two sides agreed to partially restore the tariffs agreed in Geneva in May.
Progress in negotiations between the world’s two largest economies and the world’s two largest oil demand sources has supported oil prices, as expectations of a recovery in trade and energy demand have been reinforced. However, caution remains in the market as investors remain concerned about the possibility of the two countries reaching a comprehensive, long-term agreement, as well as the uncertainties that remain in bilateral trade relations.
Supply pressure continues to weigh on sugar prices
Contrary to the general market trend, the industrial raw material group recorded overwhelming selling pressure on most key products in the group. In particular, the price of sugar 11 decreased by more than 2% to 355 USD/ton, the lowest level in nearly 4 years.
The main reason for the decline in sugar prices is the prospect of continued abundant global supply in the 2025–2026 crop year. Meanwhile, global sugar demand continues to weaken, contributing to the prolonged decline in sugar prices.
Source: https://baochinhphu.vn/thi-truong-hang-hoa-nguyen-lieu-the-gioi-trai-qua-tuan-bien-dong-manh-102250616103504071.htm
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