Falling oil prices seen threatening Brazilian ethanol producers

November 5, 2014 |

In Brazil, falling oil prices are expected to have a negative impact on ethanol producers as the biofuel becomes less competitive against the fossil fuel. As ethanol becomes less competitive, that could force sugar mills—who switched to ethanol to offset lower sugar prices—to move back to sugar, further adding to a global glut.  Just over 56% of this year’s cane harvest was dedicated to ethanol.

 

Category: Fuels

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