Biodiesel premiums over ICE gasoil firm on higher spot demand

26 June 2014 17:43 Source:ICIS News

LONDON (ICIS)--Biodiesel premiums over ICE gasoil for rapeseed methyl ester (RME) and fatty acid methyl ester (FAME) 0 firmed slightly this week on increased spot buying interest, according to sources on Thursday.

Renewable Energy Directive (RED) RME premiums over ICE gasoil were assessed at $165-175/tonne FOB (free on board) NWE (northwest Europe), up by $5-15/tonne from last week.

Premiums for FAME 0 RED over ICE gasoil were at $155-165/tonne FOB Rotterdam, up by $5/tonne from last week.

ICE gasoil values have been at high levels in recent weeks as a result of concerns over crude oil supply prompted by tensions in Iraq.

Consequently, the bean oil versus gasoil (BOGO) spread has become quite attractive, tempting buyers back to the market to take advantage of the competitive premiums available.

By Sarah Trinder