Concerns regarding ethanol blend wall highlighted in Bloomberg article

May 6, 2013 |

In a Bloomberg article, ethanol’s fall was highlighted amongst concerns that the blend wall will dictate how much biofuel can be blended into petroleum, thereby capping the ethanol industry’s potential. If gasoline demand remains low, ethanol blending will also remain low, argued Jason Ward, an analyst at Northstar Commodity Investments. “The only thing that worries me is the gasoline demand category. It’s key because if you start fading on gasoline demand, you will be capped. You won’t use as much ethanol.”

 

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Category: Fuels

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