Prices for vegetable oils fall under pressure from lower demand and oil prices
Prices for vegetable oil continued to fall under pressure from the continuing decline in oil prices, uncertainty with elections in the US and world economy development in conditions of pandemic.
oil Prices fluctuate under the pressure of the increased supply on the background of demand reduction. Yesterday on world markets oil prices decreased by 4% to April lows, but later played the fall, and even increased the January futures for Brent crude on London's ICE Futures exchange by 2.4% to 38.8 $/barrel, December futures for oil WTI on the new York Mercantile exchange (NYMEX) – 2.7% up to 36 and 76 $/barrel.
Strengthening of quarantine measures in some European countries may reduce the demand of oil to 2 million barrels/day. While Libya has increased oil production to 800 thousand barrels/day, and at the beginning of 2021, it will grow, according to forecasts of the Libyan national oil Corporation (NOC), to 1.3 million barrels/day.
the World was awaiting the outcome of the US presidential elections, which will be held on 3 November. The victory of Democrat Joe Biden may increase pressure on the oil market, because it promises to remove the sanctions against Iran that will increase the supply of oil to the world market of 1.5-2 million barrels/day.
made public on Friday, U.S. oilfield services company Baker Hughes, the number of operating oil rigs in the US increased for the sixth straight week, last week rose 10 to 211 of the installation.
the January futures for palm oil exchange in Malaysia falling for the fourth consecutive session and fell yesterday by 1.2% to 2975 Ringgits/t or 716 $/t against the background of falling oil prices, the slowdown in imports in the EU and lower than expected production cuts.
December futures for soybean oil on the stock exchange in the US in the early session, fell, but later recovered to 737,4 $/t
Prices for Ukrainian sunflower oil will remain at the level of 960-1020 $/t, as buyers are holding back sales. While sellers increase prices because the raw material is expensive due to limited supply from farmers.
