oil exports

 
 

Malaysia, Indonesia slam EU move on palm oil

KUALA LUMPUR: Top palm oil producers Indonesia and Malaysia today criticised the European Union (EU) for backing a ban on the use of palm oil in biofuels, with a Malaysian minister calling the move a protectionist trade barrier and a form of “crop apartheid”.

European lawmakers approved draft measures on Wednesday to reform the power market there and reduce energy consumption to meet more ambitious climate goals. The plan includes a ban on the use of palm oil in motor fuels from 2021.

Indonesia and Malaysia are the world’s top two palm oil producing countries, accounting for nearly 90% of global supply.

A large portion of European palm oil imports are used to make biofuels, giving the industry’s top two producers cause for concern as they fear overall demand will fall.

“This vote is very disappointing. It’s a black day for free trade. You are discriminating against palm oil,” Malaysia’s Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong told reporters at an industry conference here.

By allowing other vegetable oils to be used in biofuels, the EU was discriminating against palm oil, he said.

“The EU is practising a form of crop apartheid,” Mah said separately in a statement.

Palm oil exports are a key source of revenue for Malaysia. The EU is its second-biggest market after India.

Indonesian Trade Minister Enggartiasto Lukita told reporters in Jakarta there should be fair treatment for all vegetable oils, and that Indonesia had protested the EU’s “negative campaign” on palm oil on several occasions.

The palm oil industry has come under fire in Europe over its impact on forest destruction and Southeast Asian producers have faced calls to meet higher sustainability standards.

Mah said Malaysia’s ambassadors in the 28 EU member countries will raise objections and that he will work closely with Indonesia to protect the interests of smallholders.

“The government will not tolerate the denigration of the palm oil industry and will ensure Malaysia gives a fitting response to those who harm the palm oil industry,” Mah said. – Reuters


Mah: EU’s move unjustified, discriminatory

mah-siew-Keong

KUALA LUMPUR: Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong yesterday slammed the European Parliament’s decision to ban all palm oil biofuels from the bloc’s renewable energy (RE) in future, calling the move unjustified and discriminatory. In a strongly-worded statement, Mah said the move is a “wholly unjustified blockade” against Malaysia as it would allow all other oilseed crops to continue operating under the European Union’s (EU) RE directive. “This is a clear case of discrimination against palm oil-producing countries. The EU is practising a form of cropRead More


US oil industry set to break record, upend global trade

shale oil drilling

Workers hired by U.S. oil and gas company Apache Corp drill a horizontal well in the Wolfcamp Shale in west Texas Permian Basin near the town of Mertzon, Texas. – Reuters filepic HOUSTON: Surging shale production is poised to push U.S. oil output to more than 10 million barrels per day – toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago. And this new record, expected within days, likely won’t last long. The U.S. government forecasts that the nation’s production willRead More


US oil industry set to break record, upend global trade

HOUSTON, Jan 16 — Surging shale production is poised to push US oil output to more than 10 million barrels per day — toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago. And this new record,…


Malaysia’s palm oil stocks up 6.97 per cent in December

KUALA LUMPUR: Malaysia’s palm oil stocks in December 2017 rose 6.97 per cent to 2.73 million tonnes from 2.55 million tonnes recorded in November. Crude palm oil (CPO) stocks increased 12.18 per cent to 1.67 million tonnes in the month under review, from 1.48 million tonnes registered in the previous month, according to preliminary figures […]


CPO export duty removal lauded, but trade war brewing

KUCHING: While most analysts have been fairly positive in the temporary crude palm oil (CPO) export duty removal that became effective yesterday, there were concerns over a possible trade war brewing with other palm oil producing countries. To recap, the Malaysian government has announced a temporary suspension of the CPO export tax for three months, […]


Iraq to export Kirkuk oil to Iran before end-Jan, says Iraqi oil minister

BAGHDAD, Jan 7 — Iraq will start exporting oil from the northern Kirkuk fields to Iran before the end of January, Iraqi Oil Minister Jabar al-Luaibi told reporters on Sunday in Baghdad. About 30,000 barrels per day of crude will be trucked to…


Malaysia’s Nov export growth at 14.4pc y/y, above forecast

KUALA LUMPUR, Jan 5 — Malaysia’s November exports rose 14.4 per cent from a year earlier, slower than the previous month, on lower shipments of commodities, government data showed today. Export growth was above the 13.9 per cent rise…


Palm oil falls on stockpile concerns

KUALA LUMPUR: Malaysian palm oil futures tumbled in early trade today, as worries over soft demand leading to high stockpiles in December lingered while weakness in rival oils compounded the bleak picture.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange dropped 1.32% to RM2,466 a tonne at the midday break, and looked set for a third straight session of falls.

Trading volumes stood at 16,130 lots of 25 tonnes each.

“Demand has not been promising. The market is closely watching how exports will turn out (this month),” a Kuala Lumpur-based trader said, noting that stocks could rise for another month.

Malaysian palm oil shipments fell 2% on Dec 1-20 compared with the same period last month, data from cargo surveyor Intertek Testing Services showed.

Inventory levels in Malaysia rose to their highest in nearly two years, by 16% to 2.56 million tonnes, while exports for November fell 11.9% on-month, data from the Malaysian Palm Oil Board last week showed.

Demand from Europe and China, key regions for palm oil exports, typically dwindles at the end of the year, as colder weather in the northern hemisphere solidifies the tropical oil.

Another trader said weakness in rival vegetable oils has exerted further pressure on palm, but the market could be slightly relieved by bargain hunters.

“Overall the market lacked positive news. Bargain buyers could come in and there could be buying for a year-end rally,” the trader said.

In other related edible oils, the January soybean oil contract on the Chicago Board of Trade slid 0.4%, while the May soybean oil contract on the Dalian Commodity Exchange was down 1.3%.

The Dalian January palm olein contract fell 1.6%.

Palm oil prices are impacted by movements in other edible oils, as they compete for a share of the global vegetable oils market. – Reuters


Philippines recovers on bargain-hunting, Vietnam up 1.5pc

SINGAPORE, Dec 18 — Philippine stocks rose 0.5 per cent today as investors hunted for bargains after Friday’s sharp fall, while Vietnam shares jumped nearly 1.5 per cent with financials and utilities driving the surge. Real estate stocks such…