Asia’s biofuel dreams shelved as crude oil tumbles

KUALA LUMPUR (AFP)

Malaysia and Indonesia, which produce most of the world’s palm oil, heavily promoted their version of biofuel — a mixture of diesel with five percent processed palm oil.

But the excitement evaporated as crude oil, which peaked at 147 dollars in July 2008, fell to current levels below 37 dollars.

That triggered a massive drop in palm oil prices from 1,245 dollars per tonne a year ago to 405 dollars per tonne last December.