Oil Rout Threatens to Scupper Demand for Palm Oil in Biofuel
- Indonesia may miss blending-mandate of 20% as crude below $30
- Malaysia's biodiesel program impacted by crude slum: Embas
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Crude oil’s slump has been so severe that it’s now threatening the government-aided biodiesel programs in the world’s top producers of palm oil.
Indonesia may miss its target of raising blending to 20 percent if crude stays below $30 a barrel, according to Fadhil Hasan, executive director at the country’s palm oil association. The slump in crude will impact the implementation of the biodiesel program in Malaysia, the nation’s Plantation Industries and Commodities Minister Douglas Uggah Embas told an industry conference in Kuala Lumpur. The two nations account for 86 percent of the global palm oil supply.