U.S. ethanol makers lose money as Ike cuts demand

Reuters
Thu Sep 18, 2008 11:41am EDT

NEW YORK (Reuters) - Average U.S. ethanol makers were losing money this week on soft prices for the alternative motor fuel after Hurricane Ike and on high prices for corn, analysts said.

U.S. distillers were losing a few cents per gallon on average for the week ending Wednesday, analysts said. Earlier in the month, they were making a slim profits on higher ethanol prices.

"It's a demand issue, which happens with hurricanes. Nobody is buying ethanol with refineries out and nobody importing anything into the Gulf," said Cory Garcia, a researcher at Raymond James & Associates in Houston. The Department of Energy said on Thursday that nine oil refineries with a total capacity of more than 2 million barrels per day were operating at reduced levels after Hurricane Ike.

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