Oil markets had a bullish start to the week as U.S. sanctions on Iran came into effect and Saudi Arabia surprisingly reduced its crude production and exports
– U.S. fuel ethanol production capacity surpassed 16 billion gallons per year, or 1.06 million barrels per day (mb/d), at the beginning of 2018, according to the EIA.
– Most is located in the Midwest, with Iowa alone accounting for more than 4 billion gallons per year.
– Federal policy has helped drive the steady increase in output, even though the ethanol industry has been fighting an all-out war with oil refiners and the oil-friendly EPA over the past year.
– The battle has mostly resulted in a stalemate, and the ouster of Scott Pruitt as EPA administrator was seen as a victory for the corn and ethanol industries. Read More