Texas biodiesel prices hold despite lower crude

11 October 2006 22:43  [Source: ICIS news]

HOUSTON (ICIS news)--Biodiesel prices in the Texas market remained steady despite lower crude oil prices, sources said.

November crude oil futures on the New York Mercantile Exchange fell 93 cents on Wednesday to settle at $57.67/barrel - about $20 cheaper than highs reached during July.

Biodiesel prices, on the other hand, were holding and sales were strong in Texas, retailers said. B100 (100% biodiesel) prices were between $2.95-3.10/gallon free on board in Texas, according to global chemical market intelligence service ICIS pricing.

Market players in Austin, Texas said they were buying B100 near the upper end of the spread for splash-blending at local sites. Retailers said biodiesel that sold as a 20% blend with petroleum diesel (B20) was selling well into the local commercial market because of its performance qualities.

Most of the B20 was selling as a premium product due to its performance, particularly for trucks. According to retail sources, truckers were finding engines running smoother with B20 and were also pleased with its energy level.

Major biodiesel producers in Texas include EarthBiofuels and Austin Biofuels.

By: Judith Taylor
+1 713 525 2653

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