Gasoline-ethanol price differential soars in US on Iran concerns

In Illinois, gasoline futures on the Chicago Mercantile Exchange have reached a record premium over ethanol prices due to concerns over sanctions against Iran paired with increasing ethanol gluts around the country. That’s despite gasoline demand falling by 8% as a result of soaring prices.

Ethanol stocks have reached a record high of 22.7 million barrels as of last week. Even though the economics mean that ethanol should be blended more, the blend wall is keeping that from happening.