Abstract Free oleic acid is emulsified in water and oxidized using potassium permanganate, to azelaic and pelargonic acids together with dihydroxy‐, ketohydroxy‐and diketo‐stearic acids at neutral pH. The yield and the products distribution are controlled by: the type of emulsifier and its concentration; the oleic acid concentration in the emulsion; and the oleic acid‐oxidant ratio.