Weak oil and holidays slows demand

Crude oil prices have continued to slide all week and look likely to decline towards the $50 price by Christmas. Also new reports of a global glut in edible oil from both Soya and Palm oil will only add to the downward pressure. At the moment the only thing holding off a greater slide is monsoon rains slowing Palm oil during December.

Coconut oil is tracking other edible oils lower and as it head towards the $1100 mark some are even predicting it to break through the $1000 level during early 2015 if nothing changes. With edible oil prices sliding even lower so desiccated prices are looking expensive at the moment. Demand has slowed for the holiday period but even more than usual as buyers watch oil prices knowing that at some point desiccated prices are likely to weaken.