Palm Oil Futures Soar as Crude Prices Climb Amid Saudi Pipeline Outage
Palm oil futures in Malaysia continued their upward trend on Tuesday, driven by rising crude oil prices and a weaker ringgit. The benchmark November contract on Bursa Malaysia Derivatives rose 0.45% to 4,872 ringgit per metric ton, according to Reuters.
The increase in crude oil prices was attributed to attacks on Saudi Arabian energy infrastructure, which left the East-West pipeline offline and raised concerns about supply disruptions. This, in turn, made petroleum diesel more expensive, making biodiesel a more attractive option, and consequently increasing demand for palm oil.
A softer ringgit also contributed to the rise in palm oil prices, as it makes Malaysian palm oil cheaper for overseas buyers. However, the contract still competes with other vegetable oils, such as soyoil in China, which fell 0.91% on Tuesday.