(Bloomberg) -- Palm oil fluctuated between gains and losses on a rally in petroleum prices and a further decline in prices of rival soybean oil.
Crude oil surged on elevated tensions in the Middle East, with Hamas firing a barrage of rockets toward Tel Aviv after Israel bombed a number of targets connected to the militant group in Gaza. Investors also waited to see if Israel would retaliate against Tehran for a missile attack last week.
Higher petroleum prices tend to boost palm oil’s biofuel appeal.
A spike in oil prices amid escalating tensions in the Middle East supported the palm oil market, said David Ng, a senior trader at IcebergX Sdn.
The tropical oil came under pressure earlier in the session due to weaker soybean oil prices, and profit-booking after last week’s rally. Soyoil — the tropical oil’s closest substitute for food and fuel — slipped as much as 1.8% on the Chicago Board of Trade, before partially recovering.
©2024 Bloomberg L.P.
