Oil prices fell 6.6% this week, adding pressure to vegetable oil prices

Over the past three sessions, November Brent oil futures fell 6.6% to a 9-month low of $72.7/barrel (-6.6% for the week, -4.5% for the month) amid negative macroeconomic news from the USA. Easing tensions in the Middle East also reduced the speculative impact on quotes.

 

Yesterday's economic news will have a negative impact on energy demand and oil prices. So, in July, the number of JOLTS vacancies in the US decreased by 237 thousand to a 3.5-year low of 7.673 million (against expectations of 8.1 million), which indicates a weak labor market. Also in August, the S&P Eurozone Business Activity Index was revised down by a further 0.2p to 51p, while the Caixin China Services Business Activity Index fell 0.5p to 51.6p (vs. expectations of 51.8). , and Japan's Jibun Bank Services Business Activity Index was revised down by 0.3 points to 53.7. Home sales in China fell 21% in 7M 2024 to an 18-year low, while the number of unfinished buildings rose.

 

Today, the weekly EIA report will be released, which will show the demand and oil reserves in the US and will affect quotations.

 

The oil market may be supported by the intentions of individual members of OPEC+ (Saudi Arabia and the Russian Federation) to convince other members to postpone the planned increase in oil production in October, as oil prices have fallen sharply against the background of significant supplies and unstable demand.

 

December soybean oil futures in Chicago fell 4.4% this week to $885/t (-1.2% for the week), which is in line with last month's level. At the same time, soybean prices are rising against the backdrop of a worsening crop condition in the US and dry weather in Brazil ahead of planting.

 

October palm oil futures on Malaysia's Bursa exchange fell 2.3% to 3,886 ringgit/t, or $879/t, from Monday on lower oil prices and rival oils, as well as India cutting palm oil imports in August by 27%.

 

According to Vortexa, crude oil stocks stored on stationary tankers for more than 7 days decreased by 14% for the week to a 4.5-year low of 52.99 million barrels, which will also support quotations in the near future.