EIA Expects Ethanol Prices to Return to Normal
Energy Information Administrator Guy Caruso said yesterday that ethanol supply is expected to be more “robust,” and the ethanol market will be “softer” this driving season than last year. He added that he expects ethanol prices to be “more of what we’ve known to be normal.”
Last summer, the ethanol industry was pressed to produce enough ethanol to adequately replace the use of another gasoline additive found to contaminate groundwater. The phase-in of ethanol in gasoline was partly blamed for high gasoline prices, which sat above $3 a gallon in many parts of the country last spring and summer.