Oil prices fall after news of OPEC+ increasing production

Commodity market today September 24: Coffee and agricultural product prices turn to increase sharply Commodity market today September 25: Corn and wheat prices weaken simultaneously

At the close, buying pressure dominated, pushing the MXV-Index up 0.05% to 2,203 points. Notably, in the industrial raw materials market, the price of Arabica coffee broke the record of 6,000 USD/ton amid less positive supply prospects in Brazil and Vietnam. Meanwhile, all 5 energy group commodities continued to be in the red.

Thị trường hàng hóa hôm nay 27/9: Giá dầu giảm sau thông tin OPEC+ gia tăng sản lượng

MXV-Index

Oil prices fall after news of OPEC+ increasing production

The energy market was on fire in yesterday's trading session. In particular, world oil prices continued to extend into the second consecutive session after the news that the Organization of the Petroleum Exporting Countries and its allies (OPEC +) could lift the production cut policy from December. At the end of the trading session on September 26, WTI oil prices decreased by 2.9% to 67.67 USD/barrel while Brent crude oil decreased by 2.53% to 71.6 USD/barrel.

Energy price list

Saudi Arabia is preparing to abandon its unofficial target of $100 a barrel for crude as it prepares to ramp up production, according to a Financial Times source. Meanwhile, the OPEC+ producer group will continue to increase oil output in December because it will have little impact if some members make larger cuts to offset surplus output in September and beyond, according to Reuters.

Meanwhile, Libyan factions have signed an agreement on the process for appointing a new central bank governor, the first step toward resolving a dispute over control of the central bank and oil revenues that has slashed Libya’s oil production and exports. The move by the OPEC+ member could restore the country’s exports to around 1 million barrels per day from an average of 400,000 barrels per day in September.

The additional supply news combined with previous concerns about weak growth from China, the world's No. 1 crude oil importer, weighed on market sentiment and put huge pressure on prices.

Although the Chinese government has introduced a massive economic stimulus package, analysts believe that monetary policy alone is not enough. Top government officials in China have also pledged to deploy "necessary fiscal spending" to meet this year's economic growth target of around 5%.

Russia said it could lift its ban on gasoline exports if fuel shortages on the domestic market improve. Despite the ban, Russian oil product exports rose about 10% in the first half of September compared to August as shipments of diesel and fuel oil recovered from multi-month lows last month.

Prices of some other goods