Olive oil prices surge over 100% to record highs and spark cooking oil thefts

Olive oil prices spiked to fresh records as severe droughts in major producing countries crimp supplies — and drive up thefts in cooking oil.

Olive oil prices spiked to fresh records as severe droughts in major producing countries crimp supplies — and drive up thefts in cooking oil.

Global prices for olive oil surged to $8,900 per ton in September, driven by “extremely dry weather” in the Mediterranean, according to a recent report by the United States Department of Agriculture. Already, the average price in August was 130% higher compared to the year before, and showed “no sign of easing,” USDA said.

Spain, the world’s largest producer and exporter of olive oil, has been battered by an intense drought for months. The country also just recorded its third hottest summer, with the average summer temperature 1.3°C higher than normal, according to state meteorological agency AEMET.

According to data from commodity market intelligence firm Mintec, Spain’s olive oil production in the recent season has slumped to around 610,000 tons — that’s a drop of more than 50% compared to the usual 1.3 to 1.5 million tons.

“Adding to the complexity of the situation are concerns about reduced production in other major European olive oil-producing countries, including Italy and Greece, where drought conditions prevail,” Mintec’s oilseeds and vegetable oils analyst, Kyle Holland, told CNBC.