Oil prices edge up after US-China meeting
According to the Vietnam Commodity Exchange (MXV), buying power continued to dominate the energy market yesterday. Noting the reaction in the world crude oil market, the prices of both commodities recorded a slight increase of less than 0.1%. Specifically, at the end of yesterday's trading session, Brent oil price climbed to 65 USD/barrel, corresponding to an increase of about 0.12%; while WTI oil price also increased by about 0.15%, stopping at 60.57 USD/barrel.
The market focus yesterday was on the new trade agreement between the world's two leading economies . After meeting with Chinese President Xi Jinping in South Korea, US President Donald Trump announced a reduction in reciprocal tariffs on imported goods from China to 47%, in return for Beijing resuming imports of US soybeans, maintaining rare earth exports and strengthening controls on illegal fentanyl trade.
Although the two sides reached an agreement after a period of escalating tensions, many opinions said this was only a step to ease concerns about trade disruption and avoid pushing the global economy into deflation, rather than a sustainable agreement that could permanently mend the relationship between the world's two largest energy demand sources.
Investors were also particularly concerned that Mr. Trump did not mention the issue of Russian crude oil imports during his meeting with Mr. Xi Jinping. This raised questions about the White House's goal of convincing major customers of Russian crude oil to switch to alternative supplies, as well as Washington's motivation in preventing Russian oil from accessing international markets.
One factor supporting the world oil price increase yesterday was the US Federal Reserve's decision to cut interest rates by 0.25% to 3.75-4% in the early morning of October 30, Vietnam time. This move is aimed at stimulating the US labor market, promoting economic growth and increasing global energy demand. However, Fed Chairman Jerome Powell remains cautious about economic uncertainties, especially when many important data from government reports are interrupted due to the shutdown. He commented that this may be the last interest rate cut in 2025.
In the domestic market, gasoline prices have also been adjusted upward in line with the trend of world oil prices. Last week, finished gasoline products on the SGX (Singapore) all increased sharply. At the price adjustment period at the end of October, the Ministry of Industry and Trade - Ministry of Finance announced an increase in retail gasoline prices ranging from 3.5% to 7%.
Specifically, diesel oil recorded the strongest increase, up to 1,318 VND/liter, equivalent to 7.37%. The two types of gasoline E5RON92 and RON95 both increased by nearly 4%, equivalent to 710 VND/liter and 762 VND/liter, respectively. Notably, in this adjustment, the Joint Ministry still maintained the policy of not setting aside and not using the Petroleum Price Stabilization Fund.
Corn prices fell after three consecutive increases.
After three sessions of strong increases, world corn prices turned to weaken in yesterday's trading session amid cautious sentiment in the agricultural market. At the end of the session, the December corn contract price on the Chicago Board of Trade (CBOT) decreased by 0.8% to 169 USD/ton.
According to MXV, the main reason is that global supply continues to remain high, making it difficult for prices to maintain recovery momentum. The latest report of the International Grains Council (IGC) maintained the forecast of world corn production in the 2025-2026 crop year at 1.297 billion tons, up 4.7% compared to the previous crop.
Favorable crop prospects in southern hemisphere countries are also adding to the pressure. Rabobank forecasts Brazil’s maize output could reach around 137 million tonnes, roughly the same as last year, while the South African Crop Forecasting Board expects the country’s output to rise 27% to 16.3 million tonnes. In Argentina, planting has also accelerated, with 34% of the area completed a week earlier than a year ago.
On the other hand, demand in the US is showing signs of slowing down. The US Energy Information Administration (EIA) reported that ethanol production in the latest week fell to 7.64 million barrels, lower than forecast, while inventories increased by 2% to 22.37 million barrels. This reflects a slowdown in corn consumption for fuel production, weakening demand in the short term.
In addition, cautious sentiment also prevailed in the market after the meeting between US President Donald Trump and Chinese President Xi Jinping, where the two sides reached some important consensus on tax and trade policies. However, so far, both sides have not announced details of commitments on agricultural trade activities. Investors are therefore still waiting for more specific signals before expanding new buying positions.
Currently, hedge funds are still net buyers of corn, but the new buying power is quite weak, making it difficult for prices to escape the short-term correction trend. Experts predict that in the short term, corn prices may fluctuate in the range of 163-166 USD/ton, before recovering if ethanol or export demand shows signs of improvement in early November.
Source: https://baotintuc.vn/thi-truong-tien-te/thi-truong-hang-hoa-the-gioi-giang-co-sau-hoi-dam-my-trung-20251031083833541.htm
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