Diesel fuel prices draw level with palm oil prices

In Germany, UFOP reports that asking prices for diesel fuel and palm oil have reached virtually the same level. The reason is contradictory price trends for crude and palm oil. Pointing to the fact that the vegetable oil markets face oversupply worldwide, UFOP expects that the preference for using palm oil as a feedstock in biofuels production will grow, especially in non-EU countries that impose virtually no sustainability requirements on the feedstocks.

German wholesale prices for diesel have soared virtually 47 per cent to around 51 euro cents per litre since their last low at the end of June 2017. The reason is the significant rise in crude oil prices, which have a determining influence on diesel pricing. Crude oil prices are driven up by steady demand based on the global economic upswing, OPEC’s and Russia’s cut in production levels and the threatened US penalties against Iran’s oil industry. In contrast, asking prices for palm oil have dropped around 19 per cent year-on-year.