KUALA LUMPUR: Malaysian palm oil futures snapped two days of losses on Wednesday, lifted by a rally in crude futures and top producer Indonesia implementing new rules to control exports of the edible oil.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed up 91 ringgit, or 1.81%, at 5,125 ringgit ($1,222.86) a tonne.

Earlier in the day, it rose as much as 3.2% to its highest since Oct. 21.

Oil prices rose to a multi-year high as an outage on a pipeline from Iraq to Turkey increased concerns about an already tight supply outlook.

Stronger crude prices make palm a more attractive option for biodiesel feedstock.

Indonesia, the world’s biggest palm oil producer, said on Tuesday it will require exporters to obtain permits for their shipments and ask producers to declare how much palm oil they plan to sell domestically, amid efforts to control soaring cooking oil prices.

This will reduce Indonesian supply, along with higher crude prices that triggered a buying spree, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Indonesian lawmakers at a parliamentary hearing on Wednesday called on palm oil producers to meet domestic demand first before exporting.

The country’s biggest palm oil association GAPKI told the hearing that the government was currently drafting a plan aimed at limiting shipments of the edible oil, remarks the Trade Ministry swiftly denied.

Dalian’s most-active soyoil contract rose 0.7%, while its palm oil contract gained 1.8%. Soyoil prices on the Chicago Board of Trade were up 1.5%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.