Indonesia’s month-long ban on the export of thermal coal in January 2022 to satisfy the demands of the domestic market; the Venezuelan oil strike of 2002-2003, which reduced Venezuela’s export to almost nothing for several months; and, the nationalisation of Libyan oil assets in August 1973 resulting in oil companies turning to the more distant Middle East producers for oil supplies.
To these crises that have rocked commodity trade, we can now add Indonesia’s 2022 palm oil export ban.
The ban by the world’s biggest edible oils shipper has sparked concerns over global food prices, with palm oil being ubiquitous in food commodities such as cooking oil, ice cream, and spreads. The ban has also shocked global markets with the swiftness of its implementation and the breadth of its coverage.
This article will discuss the effect of the ban on parties who have contracted on standard-form Palm Oil Refiners Association of Malaysia (“PORAM“) contracts and the options available to them following the ban.
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