DJ IEA: Replacing World Biofuels Would Require 1M B/D More Oil

7 Stocks You Need To Know For Tomorrow -- Free Newsletter

LONDON, May 13, 2008 (Dow Jones Commodities News via Comtex) -- -- To replace the global supply of ethanol and biodiesel-based biofuels added to the U.S. and European markets since 2005 would require an additional 1 million barrels of crude oil to be processed per day, the International Energy Agency said Tuesday.

Rising food prices have damped the political will behind biofuel policies, however, the IEA said it was unlikely biofuel targets would be scrapped in the near term.

"It is sobering to realize the amount of oil that would be needed to replace them," said the IEA.

Global biofuels supply is expected to grow to 1.5 million barrels per day in 2008, said the report.

-By Sarah McFarlane, Dow Jones Newswires; 44 20 7842 9327; sarah.mcfarlane@dowjones.com

(END) Dow Jones Newswires

05-13-08 0428ET

Morning Coffee with TradingMarkets -- Free Newsletter

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index