# Petroleum increases its influence on crop prices | The Western Producer

> Rabobank analyst Owen Wagner said crude oil increasingly drives grain and oilseed markets through the link to biofuel feedstocks such as soybean oil. Saudi Arabia and Russia are cutting petroleum output, and Saudi Arabia reportedly needs about US$85 per barrel to balance its budget.

- Date: 2023-11-02 · published 2023-11-02T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/15260-petroleum-increases-its-influence-on-crop-prices-the-western-producer
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Crude oil sets a floor under soybean oil and other vegetable oil prices as biofuel diversion grows. Oil supply cuts by OPEC+ members support crude and therefore the ag complex.

## Read by commodity

- SBO: bullish ▲
- WTI: bullish ▲
- BRENT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-10-27 | [Petroleum's influence on crop prices increases \| The Western Producer](https://feedsoft.ai/events/15270-petroleum-s-influence-on-crop-prices-increases-the-western-producer.md) | -0.9% | -10.2% |
| WTI | 2016-12-14 | [Vegetable oil prices follow petroleum prices higher after OPEC refuses to boost production  : The Daily Digest](https://feedsoft.ai/events/73554-vegetable-oil-prices-follow-petroleum-prices-higher-after-opec-refuses-to-boost.md) | -1.4% | +0.0% |
| WTI | 2023-07-26 | [The increase in the price of oil led to an increase in the prices of gas and nitrogen fertilizers](https://feedsoft.ai/events/7009-the-increase-in-the-price-of-oil-led-to-an-increase-in-the-prices-of-gas-and.md) | +2.1% | +0.7% |
| WTI | 2018-04-30 | [Will oil prices be the trigger that wakes the inflation beast? - Financial Post](https://feedsoft.ai/events/65433-will-oil-prices-be-the-trigger-that-wakes-the-inflation-beast-financial-post.md) | +2.4% | -0.3% |
| WTI | 2016-12-05 | [The good oil on grain prices… - Grain Central](https://feedsoft.ai/events/73542-the-good-oil-on-grain-prices-grain-central.md) | -0.4% | +1.3% |
| BRENT | 2023-07-26 | [The increase in the price of oil led to an increase in the prices of gas and nitrogen fertilizers](https://feedsoft.ai/events/7009-the-increase-in-the-price-of-oil-led-to-an-increase-in-the-prices-of-gas-and.md) | +1.9% | +1.0% |
| BRENT | 2018-04-30 | [Will oil prices be the trigger that wakes the inflation beast? - Financial Post](https://feedsoft.ai/events/65433-will-oil-prices-be-the-trigger-that-wakes-the-inflation-beast-financial-post.md) | -0.2% | +2.0% |
| BRENT | 2016-12-05 | [The good oil on grain prices… - Grain Central](https://feedsoft.ai/events/73542-the-good-oil-on-grain-prices-grain-central.md) | -0.3% | +3.5% |

## Sources

- producer.com: https://www.producer.com/markets/petroleum-increases-its-influence-on-crop-prices/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.