Oil price spike set to improve ethanol outlook in Brazil
SAO PAULO, Sept 17 (Reuters) – A spike in oil prices following recent attacks on facilities in Saudi Arabia is expected to boost an already positive outlook for ethanol in Brazil, according to analysts and industry representatives, further relegating sugar to the background for mills that largely process ethanol.
If higher oil prices lead to increased gasoline prices in Brazil, ethanol would keep its price advantage over the fossil fuel at the pumps, potentially leading to strong demand and good profit margins for cane mills, market participants said.
By Marcelo Teixeira via Nasdaq