Low Malaysian palm oil prices see biodiesel hit biggest discount in four years

In Malaysia, Bloomberg reports that surplus palm oil supplies have seen the gap between biodiesel and fossil fuel prices reach the largest gap seen since 2014 with palm oil-based biodiesel reaching a discount of $124 per metric ton last Friday. The gap has since narrowed to $107 on Monday. With prices so low, exports could go as high as 380,000 tons this year. Export demand is typically triggered for discretional blending when the discount is above $100.

Category: Fuels