Effect Of The COVID-Led Supply Disruption: Part 2

• The COVID-19 pandemic has impacted the demand and supply of global commodities. Crude Palm Oil (CPO) price have rallied from a low of RM2,000 per metric tonne (MT) in April 2020 to current all-time high of RM5,259 per MT.  

• As explained in Part 1, the crude oil prices have rallied by +332.8% from its low of USD19.3 per barrel due to COVID supply disruption which led to the global energy crisis. 

• The supply disruption from Covid-19 mobility control, energy crisis, winter season and pent up demand from the reopening of the economy have called for huge demand for both crude oil and CPO demand. Historically, the CPO price is positively correlated to the crude oil price (see Figure 1).