Falling oil, gasoline prices cut into E85's advantage at the pump

[Omaha Steve]

http://www.omaha.com/money/consumer/falling-oil-gasoline-prices-cut-into-e-s-advantage-at/article_9adfdad0-9527-11e4-ab7c-afd35eac04f3.html

POSTED: MONDAY, JANUARY 5, 2015 4:10 PM
By Jay Withrow / World-Herald staff writer

Nobody at the Nebraska Ethanol Board is hitting the panic button despite falling gasoline prices and the abundance of oil in the commodities markets.

Historically, E85 fuel, a blend of 85 percent ethanol and 15 percent gasoline, has been up to $1 per gallon cheaper than regular unleaded. However, recent cheaper crude oil and subsequent declining gas prices have dropped regular unleaded to around $2 a gallon, leaving E85 anywhere from just 10 cents to 40 cents per gallon under the price of regular unleaded, according to Todd Sneller, administrator of the Nebraska Ethanol Board.

Yes, said Sneller, the lower price of regular unleaded has sliced into E85 sales. But lower regular unleaded fuel prices are good for a "healthy economic sector,’’ he said. Plus, Sneller said, "ethanol values’’ remain high and strong ethanol production continues due to heavy international demand.

Another possible hit to E85 sales came as a milestone Monday when U.S. crude oil prices briefly dipped below $50 per barrel, which could translate into additional price drops for regular unleaded. U.S. crude prices had not been below $50 a barrel in five years.

FULL story at link.