• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 mins Iran downs US drone. No military response . . Just Destroy their Economy Completely. Can Senator Kerry be tried for aiding enemy ?
  • 6 hours Emissions Need To Be Halved To Avoid 3C Warming
  • 1 hour The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 hour Coal Boom in Asia is Real and a Long Trend
  • 4 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 5 hours Summit in Pyongyang: China's Xi Says World Hopes North Korea-U.S. Talks Can Succeed
  • 15 hours Solar Panels at 26 cents per watt
  • 6 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 1 hour Huge UK Gas Discovery
  • 1 day Trudeau approves Trans Mountain Pipeline
  • 21 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 1 day Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 21 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 19 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 18 hours US Shale Drilling lacks regulatory body.
Alt Text

Is Big Oil’s Plastic Bet Going Sour?

Oil majors are investing a…

Alt Text

Oil Flat Despite Middle East Tensions

Oil markets appear to have…

Alt Text

OPEC Aims For $60-$70 Oil

Equatorial Guinea’s Oil Minister Obiang…

James Stafford

James Stafford

James Stafford is the Editor of Oilprice.com

More Info

Trending Discussions

Pump Prices May Fuel Ethanol Decision in June

Ethanol prices have more than doubled over the last few months due to harsh weather conditions and transportation bottlenecks spurred by railway congestion, adding to ethanol producer woes that are already mounting over the uncertainty of government blending mandates.

With oil from the Bakken shale and Canada fighting railway congestion as well, and approval for the Keystone XL pipeline an ongoing question mark, prices are soaring and ethanol is getting the short end of the stick because the profit margins are smaller.  

The end result is a glut of supply at ethanol refineries, some of which have had to temporarily shut down.

In terminals at New York, Chicago and the on the Gulf Coast, spot prices for ethanol have risen to over $3.50 per gallon from under $2.50 per gallon just in the last month.

What it means is that ethanol—which has traditionally been cheaper than gasoline—is now more expensive. And in the US, prices at the pump carry a heavy political weight.

As the Environmental Protection Agency (EPA) considers a potential revision of the 2014 ethanol mandate, this price jump could be the market indicator that sounds the death knell for ethanol producers who are hoping there won’t be any downward revisions in the renewable fuels plan.  

In June, the EPA will have to set a floor for the amount of ethanol oil refiners will be required to blend into the mix for this year. In November last year, the EPA proposed reducing the 2014 corn ethanol requirement by 1.4 billion gallons to 15.2 billion gallons--a proposal that has had ethanol suppliers up in arms.

And the oil industry is fighting back with its own resources. This week, securities filings showed that ethanol blending credits cost refiners at least $1.35 billion last year—or three times the cost of 2012, according to a 31 March Reuters report based on disclosures from only nine refiners. The costs are related to the necessity of purchasing Renewable Identification Numbers (RINs), which are paper credits refiners have to use in order to meet quotes for ethanol blending.

By James Stafford of Oilprice.com




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





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