Surging ethanol blending will undermine wholesale gasoline prices in the Atlantic Basin, starting in 2012, according to ESAI’s newly updated two-year outlook. The outlook says that ethanol will a..
Surging ethanol blending will undermine wholesale gasoline prices in the Atlantic Basin, starting in 2012, according to ESAI’s newly updated two-year outlook. The outlook says that ethanol will add supply to the gasoline market, especially in the US. As this additional volume meets organic demand growth, it will weaken gasoline and widen the disparity between gasoline and diesel prices on both sides of the Atlantic.
ESAI believes that a new Atlantic Basin transport fuels market is emerging. Along with more refining capacity, ethanol blending in the US will increasingly expand domestic gasoline supply and reduce the region’s fuel import requirements. An import requirement that was
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