Crude Oil prices to trade sideways to higher: Angel Commodities

According to Angel Commodities, MCX CPO closed lower on Friday due to cut in tariff values of all the edible oils.

MCX CPO closed lower on Friday due to cut in tariff values of all the edible oils. The base import price of crude palm oil and RBD palmolein was cut by $1 4 each and $17 to $6 44 per tn and $6 73 per tn, respectively. According to SEA monthly update, plam oil import s into the country were down 33% and 46% for CPO and RBD Palomlein in May compared to last year.  India’s palm oil imports dropped in May due to higher taxes on shipments while weaker rupees making import s expensive.

Outlook
CPO futures may trade sideways to higher due to expectation of good physical demand due to increase in import duty of soft oil. However, weak international prices and higher domestic stocks may pressurize prices at higher levels.