• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 8 mins The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 4 hours China Burns More Coal than the Rest of the World !
  • 47 mins Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 4 hours "Climate Migrants"
  • 24 mins CHK Trading @ 90 Cents
  • 6 hours New York State Taxpayers Lose 900 Million to Tesla
  • 3 hours Does Brazil Auction Flop Forbode the Outcome of the Saudi Aramco IPO ?
  • 2 hours China's Renewables Boom Hits the Wall
  • 22 hours Water, Trump, and Israel’s National Security
  • 11 hours Giant Windmills Wildly Unpopular
  • 24 hours The End For Deutsche Bank and the European Union?
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
Download on the App Store Get it on Google Play