InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) prices are projected to remain at elevated levels in the near term, supported by rising global energy prices and geopolitical uncertainty in the Middle East.

The Malaysian Palm Oil Council (MPOC) stated on Thursday that CPO prices could stay above RM4,450 (approximately US$1,130) per metric ton.

According to MPOC, one of the key supporting factors is high global energy prices, which enhance palm oil’s competitiveness against alternative fuels.

Additionally, a favorable price spread between palm oil and gasoil continues to provide positive market support.

“Palm oil prices will be supported by strong energy prices and a favorable spread between palm oil and gasoil,” MPOC said, as reported by Reuters and published by InfoSAWIT, Monday (23/3/2026).

Volatility and Global Demand Risks

Despite the bullish outlook, MPOC cautioned that price increases may be constrained by risks stemming from a potential global economic slowdown.

Heightened uncertainty due to tensions in the Middle East could also trigger market volatility, affecting international trade patterns.

“Weaker economic growth and price volatility linked to Middle East uncertainty may delay import demand from key markets, potentially limiting further price gains,” MPOC added.

This highlights the complex dynamics in the current CPO market, where strong support from the energy sector is counterbalanced by demand-side pressures.

In the near term, CPO price movements will largely depend on geopolitical developments, global economic stability, and trends in energy markets.

For industry players, this environment calls for heightened vigilance and adaptive strategies to maintain competitiveness amid increasing volatility. (T2)