Wednesday, August 22, 2007

Rising Use Of Biofuel May Drag Crude Prices Below US$ 40 Per Barrel

In New York prices of crude oil are expected to slide to US$ 40 per barrel, with rising supplies of biofuel shaving demand growth of traditional auto fuel, as per Tetsu Emori - chief commodities strategist with Mitsui Bussan Futures of Japan. Oil consumers who want to contribute in reducing pollution are increasingly using fuels & additives derived from soybean, corn, oilseed, and sugarcane. This switch might result in money to shift from oil futures on New York Mercantile Exchange to Chicago's grain futures market. Biofuels are expected to make up nearly 7% of worldwide transportation energy by the year 2030, if the government for promoting alternatives to oil implements International Energy Agency's policies. Emori said that biofuels could mark the beginning of View the rest of this article

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