Ethanol Stocks at 16 1/2-Month High

CRANBURY, N.J. (DTN) -- U.S. ethanol supply spiked 700,000 barrels (bbl) to an 18.6 million bbl nearly 17-month high during the week-ended July 25, the Energy Information Administration reported Wednesday, with supply builds occurring along the East and Gulf coasts.

The sharp increase in supply comes despite a modest decline in production from domestic ethanol plants, while blending demand nudged up to a three-week high. EIA reported 7,000 barrels per day (bpd) in ethanol imports for the week profiled.

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Ethanol stocks in the PADD 1 East Coast increased 300,000 bbl to 6.8 million bbl last week while Gulf Coast supply shot up 400,000 bpd to 3.1 million bbl. Inventory was flat at 6.5 million bbl in the PADD 2 Midwest and at 300,000 bbl in the PADD 4 Rocky Mountains. PADD 5 West Coast supply eased 1.0 million bbl to 1.8 million bbl last week, with round effecting totals.

At 18.6 million bbl, U.S. ethanol supply is well above the year-ago inventory total of 16.5 million bbl but below the 19.4 million bbl stock total during the same week in 2012. Ethanol inventory is at its highest point since early March 2013.

The sharp increase in domestic ethanol supply was reported despite a 5,000 bpd decline in U.S. plant production from a five-week high to 954,000 bpd. Domestic ethanol output for the week is a sharp 122,000 bpd, or 14.7%, above the comparable year-ago period. During the four weeks ended July 25, domestic ethanol output has averaged 946,000 bpd, 85,000 bpd or 9.9% above the same timeframe in 2013.

Refiner and blender net ethanol inputs edged up 5,000 bpd to an 877,000 bpd three-week high, which compares with 858,000 bpd during the same week in 2013. During the four weeks ended July 25, ethanol inputs by refiners and blenders averaged 871,000 bpd, up 1.5% from the comparable year-ago period.

Implied gasoline demand increased 214,000 bpd from a six-week low to 9.006 million bpd last week, although down 141,000 bpd versus the same week in 2013. Implied gasoline demand averaged 8.948 million bpd during the four weeks ended July 25, down 1.0% from a year ago. From Jan. 1 through July 25, implied gasoline demand has averaged 8.736 million bpd, up 1.2% from the same period in 2013.

(BM/AG)

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