Palm oil futures have continued their upward trend, marking the fifth gain in six sessions, driven by a significant rally in crude oil prices. Crude oil's jump back above $100 a barrel has enhanced the demand outlook for biofuel feedstocks.
The surge in energy markets, attributed to the Middle East conflict and specific incidents like Oman clearing its key export oil terminal and tanker attacks in Iraqi waters, propelled Brent oil up by as much as 10%. This has caused palm oil to trade at near parity or even at a discount to gasoil this month, a notable shift from its average premium of $313 per ton over the past year.
Analysts note that while higher crude oil prices generally boost palm oil due to increased biofuel demand, strong palm oil production growth has been somewhat capping price gains. Despite this, the market has seen overall strength, with support levels identified around RM4,500 and resistance at RM4,650 for Crude Palm Oil (CPO) futures.
