• 3 minutes War for Taiwan?
  • 7 minutes How China Is Racing To Expand Its Global Energy Influence
  • 10 minutes Is it time to talk about Hydrogen?
  • 25 mins U.S. Presidential Elections Status - Electoral Votes
  • 7 hours CV19 VACCINE : Medical Ethics , "Do no harm"
  • 9 hours Tesla Semi
  • 9 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 1 day “Consumers Will Pay For Carbon Pricing Costs” by Irina Slav
  • 4 hours British PM Eyes Banning Gasoline and Diesel Car Sales
  • 80 days China Must Prepare for War Says State Media
Editorial Dept

Editorial Dept

More Info

Premium Content

A Worrying Sign For Global Oil Demand

Friday June 21, 2019

1. Corn prices surge…so does ethanol

- Catastrophic flooding in the U.S. Midwest delayed plantings and ravaged corn fields, which is having knock on effects in multiple commodity markets.

- Corn prices have spiked as a result of fears over adequate supplies.

- “If less corn is produced in the US, less ethanol can be produced as a result. Since mid-May, this prospect has pushed up not only the corn price but also the prices of ethanol,” Commerzbank wrote in a note. Ethanol prices are up 18 percent since mid-May, even as oil prices have declined over that timeframe.

- Higher ethanol prices in the U.S. are leading to higher ethanol prices in Brazil. But in Brazil, ethanol is produced from sugar, which means more sugar is being diverted into ethanol production.

2. Canada pushes Trans Mountain Pipeline again

- The Canadian government gave the greenlight (again) to the Trans Mountain Expansion, a pipeline that it bought from Kinder Morgan (NYSE: KMI) last year. In addition to Enbridge’s (NYSE: ENB) Line 3 replacement, the Trans Mountain Expansion is the best shot that Canada’s oil industry has at bringing midstream capacity online.

- Still, the pipeline will take several years to build, assuming there are not further delays.

- “The expansion will go a long way in alleviating chronic capacity challenges that have plagued the Canadian oil sector as it is expected…





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News