Corn Rally Sparks Green Fuel Rethink by Chinese Energy Giant
- Ethanol shortage forces Sinopec to cut E10 gasoline supplies
- Feed demand boosts corn prices, threatening ethanol margins
This article is for subscribers only.
Millions of hungry pigs in China are setting off a chain reaction in the fuel market, causing the biggest oil refiner to rethink its sales strategy.
A hog herd boom amid a push to revive supplies of the nation’s favorite meat has driven up corn prices as demand for animal feed soars. That’s sent biofuel costs flying for oil titan Sinopec Group, which is now being forced to scale back its plans to sell E10, a mix of 10% corn-derived ethanol and gasoline.