Price of petrol for January delivery surges

USA

NEW YORK, December 2, 2015 – Petrol demand for January delivery peaked on December 1 following the announcement of new ethanol requirements that may lead prices to rise. The 4.3-percent increase raised prices to $1.36 per gallon over stockbuilding purchases, outpacing global crude.

The US Environment Protection Agency released a 2016 requirement for fuel companies to bland 18.1 billion gallons of ethanol and other biofuels into petrol on Tuesaday, sparking concerns that refineries would send diesel abroad to avoid the process, making petrol more expensive.

The ethanol decision will reduce the amount of crude oil that goes into the fuel form for retail at the pump. According to Tim Evans, an analyst at Citi’s Futures Perspective in New York, this may cause further volatility and even a drop in prices over medium-term.

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