Jump in oil prices - encourage biodiesel demand hence increase Crude Palm Oil (CPO) prices?

Due to my holdings in Indoagri, I have been keeping a look out on the Crude Palm Oil (CPO) prices and associated news that may affect it. Oil prices have been showing an increase due to improvement in economy. Coupled with tension in the Middle East, this triggered fears of supply crunch in oil. As an oil alternative for fuel, this may mean good news for CPO producers since this may encourage biodiesel demand.  

On the flip side, I have holdings in Food Empire as well, which is a direct user of CPO. However, I have read that coffee and sugar prices continued to be depressed, so I will monitor this for now.

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Excerpt of article from Reuters on Friday 5 July 2013

UPDATE 9-Oil jumps $2 on Egypt, US data, biggest weekly gain in a year

NEW YORK, July 5 (Reuters) - Oil prices jumped nearly $2 a barrel on Friday to notch their biggest weekly gain in a year, boosted by concerns over rising tensions in Egypt and better-than-expected U.S. economic data.

Prompt U.S. oil prices initially lagged gains but rallied later in the day, extending this week's abrupt gains in spreads on speculation that U.S. Midwest oil supplies are poised to tighten. The September versus October U.S. West Texas Intermediate spread <CLU3-V3> rose 26 cents to close at a contract high of $1.31 a barrel.

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U.S. crude oil prices extended their string of 14-month highs. Front-month U.S. crude oil futures settled $1.98 per barrel higher, or 1.96 percent, at $103.22, after touching a high of $103.32. Trading volume was thin due to the Independence Day holiday on July 4.

U.S. oil gained 6.7 percent for the week, the largest weekly percentage gain since October 2011.

Brent crude oil for August delivery traded at a three-month high and ended $2.18 per barrel higher, or up 2.07 percent, at $107.72 after hitting a high of $107.88.

Brent gained more than 5 percent on the week and showed its highest weekly percentage rise since last June.

Oil prices vacillated earlier in the day after data showed that U.S. employers added 195,000 new jobs to their payrolls last month, more than expected.

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But for oil markets, the potential upside from increased economic activity outweighed risks from the rising dollar and possible policy tightening, said Matt Smith, commodity analyst at Schneider Electric in Louisville, Kentucky.

SUPPLY TIGHTENS, MIDEAST TENSIONS WEIGH

Crude oil extended gains late afternoon after the leader of Egypt's Muslim Brotherhood, Mohamed Badie, told a protest rally that ousted president Mohamed Mursi must be reinstated following his removal by the army - "otherwise its our lives".

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Other factors are also tightening European oil supplies. Maintenance on the North Sea Forties crude oil field in August will reduce the amount of benchmark oil that underpins the Brent contract.

Libya's largest export terminal was shut late on Thursday. Port guards locked the gate over salary complaints, preventing workers from continuing operations.

The closely watched spread between global benchmark Brent crude oil and U.S. West Texas Intermediate had widened to $5.17 per barrel and settled at $4.50.

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