European biodiesel premiums soar as oil hits six-year lows

In the Netherlands, as oil prices continue to fall to new six-year lows, the premiums for biofuels rise, as is the case with RED-compliant FAME that saw its premium hit a new record of $427/mt last week, the highest since Platts started tracking RED FAME prices in February 2012. Analysts expect oil prices to remain low, and therefore the biodiesel premium to remain high, at least through the middle of September. Production margins for biodiesel have been slim the last few months, so the market is reacting in turn by reducing production.