Prompt Los Angeles ethanol price spike blamed on rail delay

Houston (Platts)--19Jul2006

Prompt Los Angeles ethanol shot higher Wednesday, the apparent result of
a BNSF railroad incident near the California-Arizona border.

BP reported buying 5,000 barrels of prompt ethanol in Los Angeles at
$3.75/gal, 55 cents above Tuesday's spot assessment.

The ethanol terminal in the Los Angeles area directly affected by the
situation is in Carson, California, which is southwest of Los Angeles.

One buyer of ethanol reported that Carson was "just about out" of
ethanol.

Calls to BNSF were not returned.

Market sources said the incident, believed to have occurred Monday due to
a defective wheel on a train, should have a short-term effect.

The Southern California market is served by other terminals including
those located in Gardena, Wilmington, and Stockton.

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