Crude oil price now falls to US$47 per barrel Tuesday on supply concern. Member countries of Organization of Petroleum Exporting Countries (OPEC) opt not to cut their oil productions, to compete the growing oil supply from United States. Indonesian crude oil price also dropped by US$15.83 to US$59.56 per barrel at December 2014, compared to previous month. Apart from supply concern, the current oil price drop is also due to the appreciation of dollar and the slowdown of China economy.

Shares of plantation companies and futures contracts of crude palm oil (CPO) might continue to be negatively affected by falling crude oil and economic slowdown in Europe. Nymex crude oil fell further to US$50 per barrel in New York few hours ago. Companies in this report: TSH Resources, Genting Plantations, and Sawit Sumbermas.

Falling crude oil triggered some changes in oil and gas industry, including farm-ins and outs of production sharing contracts in Indonesia. On Monday, New Zealand Oil & Gas Limited (NZOG) informed market participants of its acquisition of 19.99% shares in Cue Energy Ltd. NZOG and Cue Energy are both having operations in Indonesia.

Heavy equipment supplier, mining contractor and coal producer United Tractors (UNTR) has just released operational data for January-November 2014. Pretty much as predicted, UNTR suffered significant fall in sales of construction machinery in October and November, dragging further down 11 month sales by 13.9%.

Falling CPO prices dragged down Golden Agri Resources (GAR) Ltd, a company controlled by Sinarmas Group, to its historical low on Singapore Exchange Wednesday. The Company, which had total liabilities of US$5.6 billion currently has market cap of S$5.46 billion only, losing almost 50% its value since late 2010.

Stocks of energy producers regained grounds worldwide Tuesday and this morning as WTI crude oil returned to above US$55 per barrel. Indonesian government’s decision to approve higher coal production for the sake of State revenues next year, however, might delay recovery of the commodity in the seaborne market.

Weakening of soybean oil and crude oil might continue to drag down crude palm oil (CPO), which dropped around 2.5% Tuesday in the futures market. Lower output reported by Malaysian and Indonesian planters, however, might cap deeper corrections.

Olam has launched worldwide acquisition of cocoa business of Archer Daniesl Midland Company (ADM) for US$1.3 billion on a cash and debt free basis. The assets acquired include 8 processing facilities with 600,000 tons per annum capacity. Implications for Indonesia?