# Ethanol margins slump to multi-month lows on natgas surge

> European ethanol production theoretical margins fell to multi-month lows this week as energy costs surged. The drop is attributed to a natural gas price spike that raised production costs.

- Date: 2022-07-08 · published 2022-07-08T12:00:00.000Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/40484-ethanol-margins-slump-to-multi-month-lows-on-natgas-surge
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Higher natural gas costs squeeze European ethanol margins and can reduce production, which lowers co-product supply. The energy spike also adds upward pressure on fertilizer and feed input costs.

## Read by commodity

- NATGAS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2021-09-30 | [U.S. natgas futures jump to 7-year high on Europe supply fears \| Reuters](https://feedsoft.ai/events/45219-u-s-natgas-futures-jump-to-7-year-high-on-europe-supply-fears-reuters.md) | +4.2% | +8.1% |
| NATGAS | 2026-10-06 | [US natgas prices hit one-week high on lower output, higher LNG flows \| MarketScreener Hong Kong](https://feedsoft.ai/events/630-us-natgas-prices-hit-one-week-high-on-lower-output-higher-lng-flows.md) | +4.0% | -6.1% |
| NATGAS | 2021-10-05 | [Gas price surges to a record high in Europe on supply concerns](https://feedsoft.ai/events/44766-gas-price-surges-to-a-record-high-in-europe-on-supply-concerns.md) | -6.6% | -10.0% |
| NATGAS | 2021-09-28 | [U.S. natgas rise to 7-year high on record global prices](https://feedsoft.ai/events/7925-u-s-natgas-rise-to-7-year-high-on-record-global-prices.md) | +2.9% | +3.4% |
| NATGAS | 2021-10-11 | [Oil settles up 1.5%; hits multi-year highs on surging demand \| Reuters](https://feedsoft.ai/events/44717-oil-settles-up-1-5-hits-multi-year-highs-on-surging-demand-reuters.md) | -1.6% | +0.0% |

## Sources

- qcintel.com: https://www.qcintel.com/biofuels/article/ethanol-margins-slump-to-multi-month-lows-on-natgas-surge-7073.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.