Palm oil-gasoil spread at nine-year low making discretionary blending impossible

In Malaysia, Bloomberg reports that the palm oil-gasoil spread is grown to its largest since 2011 at around $350 per metric ton but soared past $400 earlier this month, making the vegetable far too expensive for discretionary biodiesel blending and risking Malaysian and Indonesian attempts to boost their blending mandates. The countries are seeking to prop up prices to support small farmers while also reducing FX expenditure on fossil fuel imports but with gasoil prices 45% lower on the year, it’s difficult to keep justifying the expense.