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Asia Energy US

Fall in Crude sees gasoil/vegoil spreads rise

After recent instability energy markets are coming off a bit thismorning, leaving spreads to veg oils all up as the week comes to an end. Market participants anticipate a quiet trading day, with Chinese public holidays today and holidays in the US on Monday. Crude oil has fallen overnight, with stockpiles remaining 100 million barrels above the five year seasonal average and talks of Venezuela and Russia agreeing to take initiative on attempting to stabalise the volatile oil markets. The BOGO spreads were pushed back up $13/t, after being wiped earlier this week from the strongest surge in oil in 25 years, with front month gasoil contracts coming off $12/t overnight. Soybean futures fell for November delivery with reports from the USDA saying domestic production will rise this month to 3.924b bu, and sales of 110,000mt set for delivery in China. Bloomberg surveys are anticipating a surge in Malaysian palm oil production, with beliefs stockpiles could soar 14%, nearing December 2012 record highs.

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