# Crude oil’s crash jeopardises Asia’s cleaner fuel ambitions | FMT

> Brent crude fell almost 25% on Monday, March 9, 2020, hammering Asia's biofuel industry. Palm oil is still about US$200 a ton more expensive than gasoil, the widest premium in over three years, after palm briefly fell over 10% the day before.

- Date: 2020-03-10 · published 2020-03-10T12:00:00.000Z
- Category: macro · region Asia · magnitude medium
- Page: https://feedsoft.ai/events/54010-crude-oil-s-crash-jeopardises-asia-s-cleaner-fuel-ambitions-fmt
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

A wide palm-to-gasoil premium makes discretionary palm biodiesel blending uneconomic, cutting domestic biofuel demand for palm oil in Indonesia and Malaysia and weighing on palm and soyoil prices.

## Read by commodity

- SBO: bearish ▼
- WTI: bearish ▼
- BRENT: bearish ▼
- DIESEL: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2020-03-11 | 5 | -8.7% | -3.4 | Brent fell almost 25% on March 9 and palm briefly dropped over 10%, which hit the biofuel demand outlook and the palm price directly. |
| SBO | 2020-03-11 | 5 | -10.1% | -4.4 | The Brent crash hit biofuel economics and palm fell sharply, weakening vegetable oil demand and prices including soyoil. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2020-04-28 | [Malaysian B20 Biodiesel Affected By Low Crude Oil Prices – MPOC](https://feedsoft.ai/events/53509-malaysian-b20-biodiesel-affected-by-low-crude-oil-prices-mpoc.md) | -9.4% | -4.5% |
| PALMOIL | 2020-03-13 | [Crude oil sell-offs see prices for palm oil decline \| Analysis & Features \| The Grocer](https://feedsoft.ai/events/54237-crude-oil-sell-offs-see-prices-for-palm-oil-decline-analysis-and-features-the.md) | -2.8% | -3.9% |
| PALMOIL | 2020-01-29 | [Coronavirus punishes equities, ringgit and crude palm oil](https://feedsoft.ai/events/55341-coronavirus-punishes-equities-ringgit-and-crude-palm-oil.md) | -9.4% | -11.8% |
| PALMOIL | 2020-09-30 | [Prices for vegetable oil are falling after oil quotations](https://feedsoft.ai/events/51197-prices-for-vegetable-oil-are-falling-after-oil-quotations.md) | -2.4% | +1.7% |
| PALMOIL | 2020-09-29 | [Palm Oil's Biofuel Goals Just Got a Whole Lot Harder to Meet \| Financial Post](https://feedsoft.ai/events/51199-palm-oil-s-biofuel-goals-just-got-a-whole-lot-harder-to-meet-financial-post.md) | -5.6% | +1.6% |
| SBO | 2025-03-05 | [Declining crude oil and vegetable oil prices lower prices for sunflower seeds and oil in Ukraine](https://feedsoft.ai/events/11140-declining-crude-oil-and-vegetable-oil-prices-lower-prices-for-sunflower-seeds.md) | -0.9% | +8.7% |
| SBO | 2020-09-30 | [Prices for vegetable oil are falling after oil quotations](https://feedsoft.ai/events/51197-prices-for-vegetable-oil-are-falling-after-oil-quotations.md) | +1.3% | +3.8% |
| SBO | 2020-09-29 | [Palm Oil's Biofuel Goals Just Got a Whole Lot Harder to Meet \| Financial Post](https://feedsoft.ai/events/51199-palm-oil-s-biofuel-goals-just-got-a-whole-lot-harder-to-meet-financial-post.md) | -1.4% | +3.5% |

## Sources

- freemalaysiatoday.com: https://www.freemalaysiatoday.com/category/business/2020/03/10/crude-oils-crash-jeopardises-asias-cleaner-fuel-ambitions

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