Ethanol Blog

Ethanol Drawing From Strong Gasoline Demand

Rick Kment
By  Rick Kment , DTN Analyst

The last full week of March posted continued increases in overall gasoline demand, according to the latest EIA report. Implied demand for gasoline, which is a proxy used to measure the overall movement of gasoline through the country, is increased to 396.2 million gallons per day. This increased 126,000 galling per day from the previous week.

But the biggest focus through the market is that overall demand is running 8.3% ahead of year-ago levels. With the early Easter season in 2015 compared to 2014, there is expected to be some additional gains in demand in the coming reports based on holiday driving activity.

Even though steady day-after-day support is not likely to continue to develop through the ethanol markets, the focus on greater need for gasoline will continue to drive ethanol consumption and without a significant shift in production rates will likely show even more erosion of inventory levels through early April.

Rick Kment can be reached at rick.kment@dtn.com

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