The rapid growth of oil quotations was not able to support prices for vegetable oils

Speculative growth of oil prices by 10% did not support the vegetable oil markets, which suffer from a lack of demand, while even minor China's purchase of soybean oil in the United States have raised prices by 1%.

Yesterday, oil prices rose against the background of the following news:

the

OPEC cut forecast for oil demand this year at 9 million barrels/day to 91.1 million barrels/day.

the experts of the International Energy Agency predicts decline in oil demand this year to 8.6 million barrels/day, whereas previously it was estimated at 9.3 million barrels/day.

• Saudi Arabia decided to cut oil production by 1 million barrels/day in addition to the previous obligations.

Brent crude on the London ICE Futures rose in price by 8% or 2.4 $/barrel to 31.57 $/barrel, while June futures for U.S. crude oil on the stock exchange in new York rose by 9.8% or 2,47 $/barrel to 27,76 $/barrel, even despite the gradual growth of oil reserves in the United States.

However, the rates of palm oil will not grow as usual, after the price of oil, and dropped to 2031 Ringgits/t or 468,19 $/t under pressure from forecasts of increasing production and reducing consumption, especially in Indonesia.

Despite the fall in soybean prices, futures for soybean oil in the US rose yesterday by 1% on USDA data on China's purchase of 20 tonnes of us soybean oil. China buys small batch soy and maize within a commercial transaction, which yesterday President trump has again threatened to cancel, accusing China of passivity in preventing the spread Covid -19 and cover-up at the beginning of the epidemic.

the restoration of the level of the paraná river in Argentina is intensifying the export of soybeans and by-products, and lower prices for soybean oil, which now reached its highest April level – 575,5 $/t FOB Up River.

the Demand for Ukrainian sunflower oil is low, but after a limited amount of offers, prices are kept at a high level 700-710 $/t FOB for shipments in June-July, and 670-685 $/t FOB for the production of a new crop.

India, which is the main buyer of Ukrainian sunflower oil, plans to introduce import duty on unrefined sunflower oil, as recently put it to refined palm oil. This can further reduce demand, especially amid increasing suggestions cheap palm and soybean oil.