All and all it's just another brick in the wall. Blend-wall that is! Oil futures continue to the down side after the Environmental Protection Agency announced its long awaited recommendation on the easing of ethanol requirements in gasoline.
The writing is on the wall. In the United States coal is on its way out and natural gas is on the way in. While the market only saw a slight pop on yesterday's big announcements on coal and natural gas, it signals the beginning of a new era.
In a high stakes game of chicken between the renewable fuel industry, the refining industry and the Environmental Protection Agency, it appear that the EPA just made a turn before hitting the brick blendwall.
Natural gas broke out above $4.00 in decisive fashion as the trade seemed to embrace the fact that Goldman Sachs has upped their natural gas forecast and catching up with the bottom that I called in January.
A challenge to an Environmental Protection Agency rule allowing higher concentrations of corn-based ethanol in gasoline was thrown out by a U.S. Appeals Court ruling that the groups pressing the case had no right to sue.