# Biodiesel blending not attractive thanks to oil crash

> Brent crude sank more than 20% on March 9 after Saudi Arabia cut its selling prices in a price war with Russia, with Brent falling to about US$35.47 per barrel. Singapore-based analyst Sathia Varqa said CPO-to-gasoil spreads of about US$140 make palm biodiesel blending unattractive without subsidies.

- Date: 2020-03-10 · published 2020-03-10T12:00:00.000Z
- Category: geopolitics · region Global · magnitude high
- Page: https://feedsoft.ai/events/54015-biodiesel-blending-not-attractive-thanks-to-oil-crash
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Lower diesel prices remove the economic incentive for palm biodiesel blending, cutting a source of palm oil demand and pressuring palm and soyoil prices.

## Read by commodity

- 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 | The crude crash left palm biodiesel blending unattractive without subsidies, cutting expected energy-linked demand for palm. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2018-03-06 | [Malaysia to respond with 'might and tact' if EU proceeds with palm oil curbs: minister](https://feedsoft.ai/events/65879-malaysia-to-respond-with-might-and-tact-if-eu-proceeds-with-palm-oil-curbs.md) | -2.7% | -0.4% |
| PALMOIL | 2026-10-01 | [CPO Futures Extend Losses Amid Weaker Crude Oil Prices](https://feedsoft.ai/events/9799-cpo-futures-extend-losses-amid-weaker-crude-oil-prices.md) | -5.8% | -3.8% |
| PALMOIL | 2024-08-30 | [Oil Prices Drop as OPEC+ Considers Increasing Production in October \| OilPrice.com](https://feedsoft.ai/events/28974-oil-prices-drop-as-opec-considers-increasing-production-in-october-oilprice-com.md) | +4.4% | +7.2% |
| PALMOIL | 2022-03-14 | [Palm plummets nearly 10% as rival Dalian oils, crude weaken - Markets - Business Recorder](https://feedsoft.ai/events/5499-palm-plummets-nearly-10-as-rival-dalian-oils-crude-weaken-markets-business.md) | -5.0% | -10.6% |
| PALMOIL | 2020-03-08 | [Oil price war between Saudi, Russia after failed OPEC deal](https://feedsoft.ai/events/54278-oil-price-war-between-saudi-russia-after-failed-opec-deal.md) | -6.5% | -12.1% |
| BRENT | 2020-03-09 | [U.S. shale producers rush to cut spending, output as oil prices tank](https://feedsoft.ai/events/4425-u-s-shale-producers-rush-to-cut-spending-output-as-oil-prices-tank.md) | -27.3% | -36.6% |
| BRENT | 2020-10-12 | [Libya’s biggest oil field reopens, adding to OPEC’s challenges](https://feedsoft.ai/events/50822-libya-s-biggest-oil-field-reopens-adding-to-opec-s-challenges.md) | -0.3% | -8.2% |
| BRENT | 2026-05-03 | [OPEC+ countries, including Saudi Arabia and Russia, to boost oil production \| AP News](https://feedsoft.ai/events/19149-opec-countries-including-saudi-arabia-and-russia-to-boost-oil-production-ap-news.md) | -9.5% | -14.6% |

## Sources

- themalaysianreserve.com: https://themalaysianreserve.com/2020/03/10/biodiesel-blending-not-attractive-thanks-to-oil-crash/

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