- Crude oil prices are not the only energy commodity that's falling, as U.S. ethanol prices have hit their lowest levels in 17 years, according to S&P Global Platts.
- Ethanol trading on Chicago's Argo Terminal reportedly closed at $0.99/gallon on Tuesday, the lowest price for the corn-based fuel since 2003 and the first time its assessed value has dropped below $1/gallon.
- S&P Global's Sophie Byron says the price decline has been driven by coronavirus-related demand fears and falling gasoline prices in the Saudi-Russia oil price war, which has added to downward pressure on an already oversupplied ethanol market.
- Although some ethanol plants may shift their production to make disinfectants in the short term, Platts says those volumes likely would not make a dent on prices.
- Potentially relevant tickers include CVI, CVRR, HFC, MPC, VLO, PSX, PBF, ADM, GPRE, GPP, PEIX, REGI, REX, ANDE
- ETFs: CORN, FUE