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Energy

Oil prices fall as US rig count gains

A build in the US oil rig count on Friday despite collapsed oil prices swung downside pressure back onto the  mineral oil complex relative to vegetable oils on Friday, pushing the BOGO spread for September back into the $160s/t this morning. US operators have added 27 rigs to their count since the industry’s operations bottomed in late June, although  the count remains well below the near 2,000 operational rigs seen into late 2014.

In vegoils, Malaysia has opted to keep September crude palm oil exports untaxed through September, which should continue to incentivise redistribution of market share from the  higher taxed Indonesian market. Malaysian sellers have struggled to maintain the blistering pace of sales seen in the first tend days of August however, with the MoM rise dropping from near 60% to less than 8% in the full first half of August, leaving full first half sales at 730,000t.

MS

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