LONDON (ICIS)--Spot European biodiesel prices dropped this week as a result of weaker vegetable oil and gasoil prices, according to sources on Thursday.
Renewable Energy Directive (RED) rapeseed methyl ester (RME) prices were at $1,050-1,081/tonne FOB (free on board) NWE (northwest Europe), down $30-40/tonne from last week.
Fatty acid methyl ester (FAME) 0 RED prices were at $1,040-1,071/tonne FOB Rotterdam, down $30-40/tonne from last week.
Rapeseed oil prices decreased despite biodiesel producers saying that supply of the old rapeseed crop was tight, tracking weaker soybean oil values and negatively impacting the premiums of RME and FAME 0 as a result.
In addition, the daily settlements of front-month ICE gasoil settled in a range of $899.75-920.75/tonne this week, down from a range of $924.75-936.00/tonne last week.
ICE gasoil tracked losses seen in the crude market earlier in the week as a result of the news that Libyan exports could rise by around 500,000 bbl/day after rebels announced that they would be removing their blockade of the Es Sider and Ras Lanuf oil terminals.