By Myke Feinman
DTN Refined Fuels Reporter
A slide in gasoline demand is, in turn, reducing demand for ethanol blending, while Energy Information Administration data today showed gasoline stocks surging 7.9 million bbl for the week-ended Nov. 30 to a 7 1/2 month high.
"Looks to me like gasoline usage is going down," Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage, Des Moines, Iowa, told DTN/The Progressive Farmer this morning. "That's never good for the ethanol industry. With plenty of stocks for gas, they don't need to blend so much."
Also weighing on the market, U.S. ethanol supply increased 1.0 million bbl to a 19.3 million bbl 2 1/2-month high last week as U.S. production plants ramped up output 32,000 bpd to an 835,000 bpd five-month high, EIA data details.
Myke Feinman can be reached at email@example.com
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