Joel Hanley, global director of fuel oil markets at S&P Global, said analysts expect the price of crude oil for the year to be between $85 and $100 per barrel. He mentioned that OPEC cuts and potential changes to these cuts could affect market dynamics. If major OPEC members like Saudi Arabia, the United Arab Emirates and Kuwait increase production, it could lead to lower prices.
India’s palm oil imports jumped 74 per cent to 7,63,300 tonnes in May this year, compared to 4,39,173 tonnes a year ago. This as the world’s largest buyer of vegetable oil has stockpiled the product to meet growing domestic demand. India is the largest buyer of palm oil and Indonesia is the largest producer of palm oil in the world. Nearly 50% of the edible oil imported by India is palm oil.
Indonesian Ambassador to India Inna H. Krishnamurthy commented on the increase. She noted that although the sharp rise in imports was only in May, the overall increase from the previous year was only 8%. She attributed this growth to rising domestic demand, increased food processing, growing middle class and urbanization in India. This trend highlights India’s growing need for palm oil and the importance of a stable supply chain.
Krishnamurthy also highlighted the need to learn lessons from disruptions in other edible oil supply chains. She highlighted the importance of anticipating and reducing potential impacts on the palm oil trade, such as market speculation and stockpiling, which can lead to price fluctuations. Indonesia aims to build a more resilient and reliable palm oil supply chain to avoid such disruptions.
Francis Browne, editorial director at S&P Global, spoke about the strong demand for energy in India. As India emerges from the pandemic with a robust economy, the need for electricity is increasing. India is investing in new coal-fired power plants, totaling around 80 gigawatts across 25 units.
These power plants will require a large quantity of domestic coal, mixed with imported coals with high calorific value. This investment is part of India’s efforts to meet its growing energy needs and economic growth.
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