CPO futures close higher on stronger sentiment in crude oil market

CPO futures close higher on stronger sentiment in crude oil market

KUALA LUMPUR (Feb 4): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives erased this week’s losses to end higher on Friday (Feb 4), buoyed by stronger sentiment in the crude oil market, palm oil trader David Ng said.

It was reported that crude oil prices broke through the US$90 per barrel level due to worries over tight global supplies following major winter storms across the United States, as well as geopolitical tensions in Eastern Europe and the Middle East.

At the time of writing, the benchmark Brent crude up 2.05% to US$92.98 per barrel.

"The CPO price was also influenced by a prospect of a tighter supply in coming weeks," he told Bernama.

Ng locates support at RM5,500 per tonne and resistance at RM5,750 per tonne.

At the close, CPO futures contract for February rose RM65 to RM5,779 a tonne, March added RM86 to RM5,749 a tonne, April improved RM104 to RM5,617 a tonne, May 2022 increased RM107 to RM5,443 a tonne, June 2022 was RM101 higher at RM5,268, and July 2022 widened RM106 to RM5,107 a tonne.

Total volume expanded to 49,818 lots from 41,554 lots on Thursday, while open interest inched up to 254,448 contracts from 244,335 contracts previously.

The physical CPO price for February rose RM50 to RM5,850 a tonne.

http://www.theedgemarkets.com/article/cpo-futures-close-higher-stronger-sentiment-crude-oil-market