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Biodiesel premiums in the ARA hub climbed gradually, sustaining a negative trend in gasoil futures. The change in fossil fuel benchmarks sparked renewed interest in biofuels, with the demand for the main feedstocks UCO and RSO remaining robust.
Key Highlights:
Biodiesel barge ARA (Amsterdam-Rotterdam-Antwerp) hub premiums increased on Friday, showing a stable price trend with the previous week, as the market players met a rapid fall in the gasoil futures. The switch in fossil fuel reference prices led to a rekindled appetite for biofuel substitutes which remained the ARA biodiesel complex before the turnaround and blending mandates spread over Europe take place.
Conventional energy pricing experienced the volatility, while in the local area of biodiesel, prices held true and reflected the demand/supply dynamics. The traders assumed the stability to be underpinned by the aggressive bids for vital feedstock, particularly for Used Cooking Oil (UCO) and Rapeseed Oil (RSO) that were, due to limited availability and fervent buying interest,...
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