Crude Palm Oil Price: Oil Prices Tick Up In Volatile Trade, VEGOILS-Palm Oil Dips As Indonesia Export Tax: Oil prices rose on Wednesday despite caution as indicators such as falling US crude inventories and the general supply market were weighed down by factors such as uncertain growth. China and low gas prices.
JAKARTA, Oct 17 (Reuters) – Malaysia’s palm oil futures opened lower on Monday, paring gains from the previous session after peer Indonesia saw export taxes on palm oil weaken in the second half. of October. Benchmark oil palm FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange fell 0.85% to 3,833 ringgits ($813.46) a tonne in early trade, after gaining nearly 5% on Friday.
Brent futures for December settlement rose 60 cents, or 0.7%, to $90.63 a barrel at 0913 GMT. Earlier in the session, Brent fell as low as $89.32.
US West Texas Intermediate crude for November delivery, ending Thursday, was at $83.59 a barrel, up 77 cents, or 0.9%. The December contract was at $82.73, up 66 cents, or 0.8%.
In the previous session, contracts fell to their lowest levels in two weeks following news of US President Joe Biden’s plan to release more barrels from the Strategic Petroleum Reserve (SPR). British and Dutch wholesale gas prices fell this week due to mild weather, full gas storage tanks, and more liquefied natural gas (LNG) suppliers.
“The outlook for gas prices in Europe over the next few months has taken a disappointing turn in anticipation of a shift from gas to oil,” said PVM analyst Stephen Brennock. China has postponed the release of some key economic data this week, a move that has fueled fears of weak growth.
But there are also signs of a rebound in Chinese demand for oil, including mega-refiner Zhejiang Petrochemical Corp (ZPC) and state-owned ChemChina receiving huge new imports. The upcoming European Union bans on crude oil and petroleum products and production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, a group is known as OPEC+, 2 million barrels daily fixed price.
The EU decision on crude oil and oil prices will start in December and February respectively. “The supply freeze is near, so we expect the oil market to strengthen, masking recessionary fears,” UBS analysts said in a note. “Prices should rise above $100 a barrel in the coming months to increase production and restore supply balance, in our opinion, because oil producers are low always. for many years.”
In the United States, crude oil inventories fell by about 1.3 million barrels, according to market sources, according to figures from the American Petroleum Institute on Tuesday.
Crude oil and distillate equipment fell, sources said. [APIS]
Official inventory data is expected at 10:30 a.m. (2:30 p.m. GMT). [EIA/S]
(Additional reporting by Isabel Kua; Editing by Muralikumar Anantharaman)
(Only the title and images in this article may have been edited by Business Standard staff; other content is independently sourced from syndicated lists.)
* Indonesia set palm oil prices for October 1. 16-31 at $713.89 a ton, according to a Commerce Department document distributed on Saturday, fixing the export tax at $3 a ton, from $33 applied to the previous benchmark price.
* Malaysia’s palm oil exports for Oct. 1-15 fell 4% from the same period in September, responsible analyst Intertek Testing said on Saturday, while independent research firm AmSpec Agri Malaysia reported an increase of 1.9%.
* Dalian’s most active soybean oil contract, DBYcv1, was flat, while its palm oil contract DCPcv1 gained 2.51%. Chicago Board of Trade BOc2 soybean oil rose 0.6%.
* Related oil price movements affect palm oil as they compete for a share of the global edible oil market. * The ringgit MYR=, the benchmark currency, fell 0.15% against the dollar, making commodities cheaper for foreign currency holders.
* Palm oil may return to support at 3,707 ringgits per tonne, following its failure to break resistance at 3,858 ringgits. technology/C
Malaysian oil palm futures recovered from earlier losses on Monday to close higher for a second straight session as strong US soybean oil provided support despite disappointing export data.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 0.31% to close at RM3,878 per tonne, after falling as much as 2.33% earlier in the month. It gained 4.6% on Friday.
The rally was triggered by a rise in soybean oil prices at the Chicago Board of Trade, a trader in Kuala Lumpur said. CBOT soybean oil prices rose 0.8%. Meanwhile, the most active Dalian soybean oil contract was down 1.26%, while its palm oil contract was up 0.84%.
Oil price fluctuations are affecting palm oil as they compete for a share of the global edible oil market.
Meanwhile, Malaysian palm oil exports for the month of October. 1-15 fell 4% from the same period in September, the responsible analyst Intertek Testing Services (ITS) said on Saturday, while independent testing company AmSpec Agri Malaysia reported an increase of 1, 9%.
Indonesia has set a benchmark price for palm oil for October 1. 16-31 at $713.89 a ton, according to a Commerce Department document distributed on Saturday, fixing the export tax at $3 a ton, from $33 applied to the previous benchmark price.
An export tax cut by Indonesian palm oil producer could make Malaysian palm oil less attractive, the trader said. Market report
* Asian stock markets fell on Monday after Wall Street was hit as investors braced for strong support in the global economy, with all the risks of a recession involved. MKTS/GLOB
No big data/events expected on Monday
($1 = 4.7120 ringgit)