Global oil and oil prices break new record
Kyiv • UNN
Oil prices in the EU have increased by 50% since the beginning of 2024 due to limited inventory and high demand. The cost of vegetable oils reached its highest level since 2022 due to a reduction in global supplies.
Food prices in the world have reached new records due to limited stocks and rising demand, butter, dairy products and vegetable oils have significantly risen in price.
Writes UNN with reference to the monthly report of the Food Organization of the United Nations (FAO).
Details
The rapid rise in oil prices is driven by strong domestic and international demand amid limited inventories, especially in Western Europe. In the EU, oil prices have jumped by almost 50% since the beginning of 2024.
In November, oil futures on the European Energy Exchange were trading at 7,900 euros per ton, and a record of 8,260 euros was recorded at the end of September.
The rise in prices is also associated with rising world milk prices due to reduced production in Europe. The negative effect is partially offset by an increase in production in Oceania. Cheese prices have also increased, indicating difficulties in meeting the growing import demand.
In addition, prices for vegetable oils — Palm, rapeseed, soy and sunflower — are rising, which reached the highest level since 2022. This rise in prices is caused by a reduction in global supplies.
As a result of the rise in the price of dairy products and vegetable oils, the FAO Food Price Index (FFPI) rose to 127.5 points in November 2024, the highest level since April 2023.
recall
Last week, Ukrainian farmers raised prices for onions. The reason for this growth was a noticeable increased demand for this vegetable. At the same time, many farms still refrain from selling onions from storage facilities, so the supply of quality products on the market remains Limited.
