It withstood a downward currency spiral, economic malaise, a jump in raw-material costs and political upheaval. Now one of Brazil’s booming industries has finally met the foe that could take it down: the oil crash.
The spectacular plunge in the crude market is sparking unprecedented reverberations across commodities and economies, with Brazil’s corn-ethanol producers standing out as a concentration of the pain. It goes to show how the unravelling in the oil market is threatening production of cleaner, renewable energy. As oil tumbles, ethanol is under pressure. The two compete directly at the pump in Brazil, where most drivers have flex-fuel cars, which can run on either.
