Ethanol Takes A Bite out of Crude

DomesticFuel.com
Posted by Joanna Schroeder – March 11th, 2010

Ethanol is taking a bite out of crude oil, this according to a recent OPEC report. An article published in The National, says that rising ethanol use in the United States is dampening demand for petroleum based fuels and this will be felt even more during the next few months.

Next week, OPEC ministers are getting ready to meet in Vienna, and last month OPEC participated in a preliminary report that estimates that $500 billion a year could be spent yer year on fossil-fuel based subsidies. In its latest monthly oil market report issued two days ago, the organization’s secretariat drew attention to an eight-fold increase in U.S. ethanol consumption since 2000. This use should grow as the E15 waiver, which allows consumers the choice to use up to 15 percent ethanol in conventional cars is expected to pass by late summer.

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