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Oil slipped nearly 1% on Monday as traders eyed an OPEC technical meeting this week which is expected to recommend an easing in supply cuts that have been propping up crude prices.

THE latest cut in the Overnight Policy Rate (OPR) rate by Bank Negara Malaysia (BNM) last week will continue to divert money into liquid investments like stocks as the ringgit is lifted by higher crude oil prices as economic activity gains transaction.

Consumption of edible oil in India, which is dominated by palm oil, has crashed by nearly 40% since the national lockdown began. Palm oil imports may slump by as much as 25% in 2020, to the lowest levels in at least a decade, experts say.

Analysts have maintained their "neutral" stand on the plantation sector after the Malaysian Palm Oil Board (MPOB) reported data for June with month-end stockpiles declining slightly more than expected by 6.3% month-on-month (m-o-m) to 1.9 million tonnes.

Malaysian palm oil futures fell on Monday, tracking losses in crude and rival soyoil, while and as higher June production also hurt sentiment.

Crude palm oil (CPO) price is expected to trend lower in the third quarter (Q3) of 2020, as output level is expected to outpace demand loss from the possibility of intermittent coronavirus lockdowns, said MIDF Research.

For sector exposure (small-mid cap), we prefer Ta Ann as they remained as one of the profitable upstream companies during a depressed crude palm oil (CPO) environment coupled with its undemanding valuation, ” it said.

Oil Search expects to recognise a non-cash, pre-tax impairment charge of US$360 -400million (US$250 –300million on a post-tax basis) in its 2020 interim results, which are scheduled to be released on Tuesday 25 August 2020.

Boycotting problematic commodities implicated in deforestation will only lead to exports of those same commodities being redirected to regions with far lower environmental standards, says advisor to the United Nations Fazlun Khalid.

Analysts are neutral on the near-term prospects of the plantations sector as uncertainties remain despite a recovery seen in crude palm oil (CPO) prices and palm oil exports.

Cameroon imported 100,000 tons of palm oil from Gabon last year.

The Karachi Port handled 92,524 tonnes of cargo comprising 45,790 tonnes of import cargo and 46,734 tonnes of export cargo including 5,095 loaded and empty containers during the last 24 hours ending at 0700 hours on Thursday.