15
Aug
Flash – Alternative energy – Biofuels
Biofuels: Increase in crude oil prices and pick-up in exports to benefit US producers
Key points
- Equities from the biofuel sector have risen +13.10% since the beginning of the year, against +12.94% for the MSCI World TR Index and -9.15% for energy the energy sector (MSCI World Energy TR)
- In H2, positive prospects for crude prices will enhance the attractiveness of biofuels in general and ethanol in particular
- Ethanol spread to gasoline (futures) once again favourable (‑3.0 cents on 15/08/2017)
- In 2017, the US remain by far the leading world producer of ethanol (58 billion litres) ahead of Brazil (25 billion litres)
- US producers will likely benefit from stable domestic demand as well as new export opportunities in Brazil and Mexico
