Ethanol Outpaced by Gasoline on Concern Blend Wall to Cap Demand
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Ethanol fell versus gasoline on concern that lackluster fuel demand will limit how much of the biofuel can be blended into petroleum.
The spread, or price difference, widened 0.48 cent to 26.64 cents a gallon. Gasoline demand over the past four weeks was 8.51 million barrels a day, a rate that would use 130.4 billion gallons in a year. Ethanol is blended with the motor fuel in a formula of as much as 10 percent and the U.S. has a mandate this year to use 13.8 billion gallons of the motor fuel, a phenomenon known as the blend wall.