04 Oct 2016
Oil prices dipped early on Tuesday, weighed down by a rise in Iranian exports that adds to a global supply overhang, although a planned OPEC-led supply cut later this year has lent crude some support.
U.S. West Texas Intermediate (WTI) crude futures were down 20 cents, or 0.41 percent, at $48.61 per barrel.
International Brent crude oil futures were trading at $50.77 per barrel, down 12 cents, or 0.24 percent, from their previous close.
See: Asian Oil Prices Pressured by Increased Iranian Exports
The decline in the price of crude oil has become a negative sentiment that has led to a downward trend in CPO prices. The weakening price of crude oil has reduced demand for alternative fuels like those made from CPO.
The most active CPO contract price at the Malaysian commodities exchange today showed a decline. The December 2016 contract, which is the most active, fell by -50 ringgit, or -1.9 percent, and traded at 2,586 ringgit per ton.
Analysts at Vibiz Research Center predict that going forward, the movement of CPO futures prices will track the price of crude oil which, if it continues to weaken, will put pressure on CPO prices. Price movements may also be affected by the movement of the ringgit and conditions of global demand and supply.
Freddy/VMN/VBN/Analyst-Vibiz Research Center
Editor: Asido Situmorang
Source: Freddy
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