Weaker Crude Prices Weigh Down CPO Futures

Kuala Lumpur-based Bursa Malaysia Derivatives saw Crude Palm Oil (CPO) futures extend losses on Tuesday due to weaker crude oil prices.

Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa explained that CPO futures initially advanced, but then fell by almost one percent as Brent crude oil reversed course and dropped 2.8% to around US$98 per barrel during late Asian trading hours.

The sell-off accelerated after reports emerged that Iran had offered to reopen the Strait of Hormuz within seven days, raising hopes of renewed negotiations and easing concerns over supply disruptions.