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Latest on E15: The Trump administration’s decision to lift restrictions on the sale of higher-ethanol fuel again this summer could help soften the low of higher gas prices – but it’s not the big win the biofuels industry has been seeking, notes Politico.
Since 2022, EPA has used an emergency waiver each year by way of the Clean Air Act to allow gas stations to sell E15 fuel in summer, but allowing those sales permanently is up to Congress, where a deal appears close but also far away.
“Consumers, fuel producers and farmers alike desperately need Congress to pass legislation that would delivery permanent year-round access for E15 and finally break the cycle of ad hog, stop-gap emergency waivers,” stated Geof Cooper, CEO of the Renewable Fuels Association, a biofuels trade group in a statement earlier today.
“If ever there were justifiable conditions to merit an emergency waiver for E15, it would be now as fuel prices have skyrocketed from war with Iran and a historical oil market disruption in the Strait of Hormuz,” noted Brian Jennings CEO of the American Coalition for Ethanol.
The petroleum industry has been skeptical of E15 waivers. In late February, American Fuel & Petrochemical Manufacturers urged EPA Administrator Lee Zeldin to use the waiver authority “judiciously,” citing limited circumstances under which they’re allowed.
“Domestic gasoline supplies are robust,” the group told EPA in a letter dated February 25, citing statistics from the U.S. Energy Information Administration.
EPA’s action today would also put E10 and E15 fuel on more equal footing in the regulations for summer, meaning the specifics are the same for each and can be applied nationwide. But E15 isn’t sold everywhere; California recently allowed it, but retailers haven’t adopted the fuel yet.
Peace talks?: Iran’s top military leadership has scornfully dismissed Donald Trump’s claims that the Islamic republic was ready to make a deal after Washington presented Tehran with a 15-point plan to end the war, according to the Financial Times.
Iran rejected the U.S.’ peace proposal and set five conditions to end the war:
- Immediate end to attacks and assassinations on Iran
- Establishment of “concrete guarantees” against future U.S. attacks
- “Clear determination and guaranteed payment” for war damages
- International recognition of Iran’s “authority” over Strait of Hormuz
- An end to the war across all fronts, including for all Iranian proxies in the region
Risks could linger: Each day the Strait of Hormuz remains largely closed to shipping casts a longer shadow over the global economy, notes Bloomberg.
A return to normal traffic through the strait is unlikely while war is raging, and once the conflict eventually subsides, it’s unclear how soon ships might resume and at what level.
The threat of attacks has left most ship operators unwilling to take the journey since the conflict began on Feb. 28. Those fears will likely continue to linger even if a formal ceasefire is forged. A form of naval escort will be a likely requirement, and such an operation will face a host of risks.
Most ship operators are either unwilling or unable to pay Iran a toll, so their only alternative is to wait until the conflict abates. Three ship or cargo operators interviewed by Bloomberg News said they would not make a Hormuz run under any circumstances while the war was still raging.
Meeting date: President Donald Trump and Chinese Leader Xi Jinping will hold their highly anticipated summing in Beijing on May 14-15, following a delay that sparked fresh uncertainty around relations between the world’s largest economies, Bloomberg reports.
White House Press Secretary Karoline Leavitt announced the rescheduled dates on Wednesday and said that Xi would visit Washington at a date later this year.
A weakened energy infrastructure: At least 40% of Russia’s oil export capacity is at a halt following Ukraine drone attacks, a disputed attack on a major pipeline and the seizure of tankers, according to Reuters calculations based on market data.
Reuters reports the shutdown is the most severe oil supply disruption in the modern history of Russia, the world’s second largest oil exporter. Oil output is one the main sources of revenue for the country’s national budget and is central to its $2.6 trillion economy.
Ukraine has intensified drone attacks on Russia’s oil and fuel export infrastructure this month, hitting all three of Russia’s major western oil export ports, including Novorossiysk on the Black Sea and Primorsk and Ust-Luga on the Baltic Sea.
With its westward export routes under fire, Moscow must rely on oil exports to Asian markets, but those markets are limited due to capacity.
Russia continues uninterrupted supplies via pipeline to China, including the Skovorodino-Mohe and Atasu-Alashankou routes, as well as ESPO Blend exports by sea via the port of Kozmino.
Together, the three routes account for some 1.9 million bpd of oil, notes Reuters.
Russia also continues to load oil from its two far eastern Skhalin projects, shipping about 250,000 bpd from the island. Traders also report that Russia is supplying the refineries in neighboring Belarus with around 300,000 bpd of oil.
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