I am not sure why it had a big run up this week but cheap gas is good for ethanol demand. When gas gets cheaper there are more gallons that get used and the more gas that gets used the more demand for ethanol to blend with the gas. If a gas station sells 1000 gallons of gas they need 100 gallons of ethanol to blend with the gas. If that same station sells 2000 gallons of gas they need 200 gallons of ethanol to blend with the gas. |