It is interesting as we may be reaching an inflection point where ngas prices bring coal back into the electrical generation mix. Even if that happens $4mcf is unlikely to move any rigs off domestic oil. Probably explains why the futures curve flattened rather than moved with spot prices. That does not help LINE selling their gas five+ years out.
Very interesting is that the ethanol corruption market seems to have the wheels coming off. Also, the Progressive crony capitalist ethanol producers are not backing off their bogus claims of any single benefit to America.
The U.S. imported 27,000 barrels a day of ethanol last week, up 50 percent from a year earlier, the Energy Department’s analytical arm said.
Spot ethanol in Sao Paulo fetched $2.37 a gallon last week, or 7 percent less expensive than today’s futures price.
The price difference, or spread, expanded 3.04 cents to 53.2 cents a gallon at 10:40 a.m. New York time. U.S. refiners imported the biofuel in the week ended March 15 for the first time since Feb. 22, a report from the Energy Information Administration showed.
“We’ve got some numbers now that make Brazil attractive,” said Mike Blackford, a consultant at INTL FCStone in Des Moines, Iowa. “That puts a lid on it.”
Of course Blooperberg omits Brazilian ethanol gets 1.5 RINS as an 'advanced ethanol' while corn get one.
Not only is Brazil making money at $2.37 but if RINs are at $1 it gets another $0.50 a gallon for the additional .5 credit.
Of course all this economic waste and insanity would not be happening if the EPA was not corruptly abusing what was promised to be an efficient 'market based program' to force a completely delusional agenda.
Why not methanol for American natural gas? Or do we have to export our natural gas as methanol just like all our gasoline so this absolute delusion and insanity can be inflicted upon Americans by Progressives?
In the mean time do not allow the politicos to touch trade terms or the RIN credit s.