The worst U.S. drought in five decades is cutting profits from producing corn-based ethanol for blending in gasoline, hindering the country’s efforts to reach energy independence, according to Poten & Partners Inc.
Stalling domestic ethanol output led to increased imports, reversing the nation’s role as a net exporter of the biofuel, the New York-based shipbroker said in an e-mailed report Nov. 23. That’s boosting demand for tankers as Brazil supplies cargoes to the U.S. East Coast, according to the report.
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