In two weeks, the price of oil rose by 12%, which supported the prices of vegetable oils

Source:  GrainTrade
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Oil continues to rise, with prices rising to a 10-month high this week on data showing a decline in global crude oil production and inventories and on hopes for growth in China’s economy and energy demand after the country’s central bank cut reserve requirements for banks.

Prices were supported by OPEC’s forecast of a possible oil deficit in the 4th quarter at the level of 3.3 million barrels/day, which will be the largest in the last 10 years. At the same time, the International Energy Agency (IEA) predicts that the oil deficit on the world market in the second half of the year will reach 1.2 million barrels/day due to a reduction in supplies from Saudi Arabia and the Russian Federation.

According to Bloomberg, the Russian Federation in August reduced crude oil supplies by 9% compared to July to the lowest in 11 months at 2.28 million barrels/day.

The weekly report by Vortexa showed that crude volumes on tankers parked for more than a week fell 5.8% as of August 8 to a nine-month high of 81.02 million barrels.

November Brent oil futures on the ICE Futures exchange rose by 2% to $93.7/barrel yesterday (+4.1% for the week, +11.9% for the two weeks, +11.5% for the month) , which supports vegetable oil prices.

Following oil prices, November palm oil futures on the Malaysian exchange fell 10% in the previous 7 sessions, before rising 2.1% on Wednesday and Thursday to 3,761 ringgit/t or $808/t (-1, 8% for a week, -7.4% for two weeks).

December soybean oil futures on the Chicago Stock Exchange fell 5.4% in September, but rose 2.9% in the last two sessions to $1,360/t (+1.6% for the week, 0% for the month) .

Asking prices for Ukrainian sunflower oil for delivery to buyers for the week fell by $20/t to $890/t on the back of a drop in demand due to increased new crop offers.

According to TankerTrackers.com, Iran increased its oil exports to a five-year high of 2.2 million barrels per day between August 1 and 20, most of which went to China. In order to replace oil supplies from the Russian Federation, the United States lifted part of the sanctions on Iran, which made it possible to increase oil exports. Iran has said that the recent agreement with the US on the release of prisoners and frozen Iranian funds could expand cooperation in other areas, including the nuclear program. The agreement on the nuclear program will lead to the lifting of US sanctions on the export of Iranian oil, which will increase supplies to the world market.

Falling oil demand in India, the world’s third-largest oil consumer, is putting pressure on prices. In July, the country reduced (compared to July 2022) oil imports by 6.3% to an 8-month low of 19.3 million tons.

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