KUALA LUMPUR (March 10): The surge in crude palm oil (CPO) prices has reignited the appeal of biodiesel amid escalating geopolitical tensions in the Middle East, which have sent crude oil prices surging past US$100 (RM392.70) per barrel, according to analysts. Analysts noted stronger crude oil prices tend to support palm oil prices through improved biodiesel economics, as higher diesel prices enhance the attractiveness of biodiesel blending. This could accelerate Indonesia’s policy momentum towards B50 implementation, tightening palm oil availability and providing upside support to CPO prices. "While it remains unclear how long geopolitical tensions will persist — and thus the sustainability of the CPO price rally — the current surge in CPO prices should support near-term earnings for planters, particularly upstream players, given their high operating leverage to CPO prices. "We estimate gasoil prices to remain above US$95/bbl this year, about 7.3% year-on-year higher versus the 2025 average of US$88.5/bbl.

Source: The Edge Markets March 10, 2026 07:24 UTC