Ethanol backers, have no fear, prices are on the rebound

While we spent a lot of late 2007 talking about the very real ethanol glut that was happening in America, the good news for people who have a lot invested in the biofuel (farmers, for one) is that prices have been on the upswing since mid-November. According to an article in the Wichita Eagle, the rebound is taking the form of a 35-cent-per gallon increase and is "within 10 cents of the wholesale price of unleaded gasoline." There is still plenty of ethanol available, but with fewer plants being built (and those that are are not being completed on schedule), prices are increasing. Once the distribution system is improved - and more people realize they can fill their flexfuel cars with ethanol - the glut will likely disappear and the supply and demand will be back in balance.

[Source: via Domestic Fuel]

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