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01.09.09

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12.15.08

OPEC Yet to Lower Oil Output

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Oil Falls on Rejected US Auto Bailout

Crude oil fell below $45 a barrel Friday after the US Senate rejected a bailout ...

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Credit Suisse: "Reversing US Ethanol Policy Will Not Lower Grain Prices"

05.15.08

A report by Credit Suisse suggests that reversing US ethanol policy, including subsidies, won't return grain prices to lower levels and would cause gasoline prices to move higher.

The report notes that corn has energy value and the market is willing to value it on that basis. The US government may decide to slow increases in the nation’s biofuel mandate, but elimination is unlikely, the analysts said. Credit Suisse also sees ethanol prices heading closer to wholesale gasoline prices as increased blending infrastructure comes on line and absorbs the ethanol surplus.



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