Palm oil prices rose 3.7% for the week, returning to mid-December levels

Malaysian palm oil futures rose yesterday (for the fifth session in a row) on production and oil export data from Malaysia.

On Bursa Malaysia, February palm oil futures rose another 0.7% yesterday to RM3,757/t or $810/t (+3.7% on the week), returning to mid-December levels when they traded at 3750 ringgit/t.

Palm oil stocks in the country at the end of December fell by 4.64% compared to November to 2.29 million tonnes, the lowest since August, amid a seasonal decline in production, according to a report released by the Malaysian Palm Oil Board (PMOB) on Wednesday. indicator

At the same time, palm oil exports from Malaysia for January 1-10 decreased compared to the same period in December by 9.8% to 349,075 thousand tons according to AmSpec Agri Malaysia inspectors and by 3.9% to 354,465 thousand tons according to surveyor Intertek Testing Services.

In 2023, Indonesia agreed to replant 53,012,000 hectares (130,955.5 acres) of palm trees on land owned by smallholder farmers under a subsidy program.

The market is now saturated with vegetable oils, so the increase in oil and fuel supplies reduces the demand for biodiesel. Houthi attacks on vessels in the Red Sea are supporting oil prices, although data on demand and inventories suggest a possible decline in prices.

March Brent oil futures are trading at $77/barrel (-1.7% for the week, +1% for the month).

The Iran-backed Houthis launched one of the largest attacks on a commercial vessel in the Black Sea to date. US Central Command reported that allied forces shot down 18 drones, 2 anti-ship cruise missiles and 1 anti-ship ballistic missile on Tuesday evening.

The growth of oil prices was stopped by the weekly EIA report, according to which crude oil stocks in the US unexpectedly increased by 1.34 million barrels, although experts expected their reduction by 150,000 barrels. Gasoline inventories rose by 8.03 million barrels to a 22-month high, despite an expected increase of 2.13 million barrels. Distillate stockpiles rose by 6.53 million barrels to a 28-month high, despite an expected increase of 1.76 million barrels.

The reduction of the official selling price of Arab Light oil by $1.5-2 per barrel by the state-owned producer of Saudi Arabia, Saudi Aramco, since February confirms forecasts of a decrease in global oil demand.