O2Diesel yesterday closed up another 15% at 0.84. Clearly something is happening but I can find no news anywhere to explain these large movements. Even in this volatile sector, this scale of volatility is exceptional . . .

O2 Diesel, a company that plans to break into the US diesel market with an optimal blend of ethanol and mineral diesel, closed tonight at 0.73, up 37.7% from 0.54. So what's going on?

We're now at very close to $70 per barrel for oil. The higher the price goes, the more the alternatives start to be priced in; even corn-based ethanol for blending in with diesel.

Will be interesting to see what happens to the stock tomorrow.