What to Blame for the Next Hike? Not What You Might Expect

Sunday, May 9, 2021, 11AM: You may have heard that a ransomware attack has led to the shutdown of a gasoline pipeline that brings fuel from the Gulf of Mexico area to the East Coast. The shutdown shouldn’t affect Midwest markets, but you never know. There is a second issue that has emerged, though, that could lead to a hike this week above $3. Ethanol prices have been soaring, up more than 20% in a week, and ethanol makes up 10% of what you put in your tank. A spike in ethanol prices leading to a price hike seems to happen once a year, and it appears to be in the works for this coming week. So, I would fill up in the $2.70’s when you can, and watch for $3+ gasoline this week. -EA