Crude Oil Price Drop Sends CPO Futures Plummeting

CPO futures on Bursa Malaysia Derivatives extended losses on Tuesday as crude oil prices fell, causing market sentiment to deteriorate. The price of Brent crude dropped by nearly 3% to around $98 per barrel during late Asian trading hours.

Bargain hunting and strength in crude oil prices had initially driven CPO futures up, but the sell-off accelerated after reports that Iran had offered to reopen the Strait of Hormuz within seven days, raising hopes of renewed negotiations and easing concerns over supply disruptions.

Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa said the price drop in crude oil triggered fresh selling pressure, causing CPO futures to fall by almost 1%.