The decline in oil prices has accelerated the fall in prices for vegetable oils
The war in Ukraine continues, and the world is witnessing more and more evidence of Russian soldiers killing and bullying civilians in the occupied territories. Photo and video from the liberated areas of Kyiv region shocked civilized society, so sanctions against Russia will soon be strengthened so that it is forced to stop the bloody massacre in central Europe.
European countries have not given up buying Russian oil and gas, which fills the aggressor's budget amid rising world prices. According to Bloomberg, in 2022, revenues to the Russian budget from oil and gas exports will grow by 30%, which will not collapse the country's economy and force it to stop the war.
However, the increase in oil production and supplies from the US Strategic Reserve by 1 million barrels per day, as well as the decision of OPEC + to increase production by 432 thousand barrels / day led to a sharp decline in oil prices at the end of last week.
June futures for Brent crude oil at London's ICE Futures fell 6.7% to $ 104.5 / barrel in the last three days, and WTI crude oil futures on the New York Mercantile Exchange (NYMEX) fell 8.3% to $ 99.4 / barrel.
Falling oil prices have accelerated the decline in prices for vegetable oils. In the last three sessions, May palm oil futures in Malaysia fell 6.5% to 5,566 ringgit / t or $ 1,320 / t, losing 8.2% in the week due to low oil prices to produce biodiesel from palm oil becomes unprofitable.
May futures for soybean oil on the Chicago Stock Exchange fell 8.5% last week, but rose 2% on Friday to $ 1568 / t on USDA forecasts for a sharp increase in soybean sowing in the US in 2022 and a reduction areas of corn sowing due to high fertilizer prices.
Prices for sunflower oil remain at the level of 1900-2000 $ / t FOB against the background of long-term blockade of ports and exports from Ukraine, as well as the introduction of a quota for oil exports from Russia at 1.5 million tons between April 15 and September 1, 2022.
