20 August 2008 13:07 [Source: ICIS news]
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By Rachel Howat and Dan Horlock
LONDON (ICIS news)--The hijack of a tanker loaded with palm oil in the Gulf of Aden could push European prices up in the short term, market participants said on Wednesday.
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PME prices were currently assessed around $1,100/tonne FOB (free on board) ARA (Amsterdam, Rotterdam, Antwerp) T2 (customs, duty cleared), with market participants estimating the hijack would add a $50/tonne premium to very prompt product.
The MT Bunga Melati Dua, a 32,000 DWT (dead weight tonnes) tanker reportedly loaded with 15,000 tonnes of crude palm oil, was hijacked on Tuesday night by Somali pirates and was heading for the Somali coast, said the International Maritime Bureau (IMB).
The tanker, owned by the Malaysian International Shipping Corp (MISC), was en route from Sumatra in
Demand for PME, a form of biodiesel used mainly in warmer climates, is traditionally low in
“It is unlikely that the hijacking will affect prices going into the future," added a trader at a leading ethanol and biofuels company.
NATO warships were tracking the vessel and no ransom demand had yet been received, said the IMB.
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