Ethanol Stocks, Production Increase

CRANBURY, N.J. (DTN) -- Ethanol supply in the United States increased for the fourth consecutive week during the week-ended Jan. 16, with inventory at a two-year high while production from domestic plants edged up to a one-month high, the Energy Information Administration reported late Thursday morning.

EIA showed a 200,000 barrel (bbl) gain in U.S. ethanol supply to a 20.4 million bbl two-year high, with inventory 3.4 million bbl, or 20.0%, greater than the comparable year-ago period.

Supply increased 400,000 bbl in the East Coast PADD 1 region to 6.9 million bbl, with stocks in the Midwest PADD 2 producer region gaining 200,000 bbl during the week reviewed to 7.1 million bbl. Supply in the Gulf Coast PADD 3 region was drawn down 200,000 bbl to 3.8 million bbl and by 100,000 bbl to 2.3 million bbl in the West Coast PADD 5 region.

The supply increase came alongside a 1,000 barrel per day (bpd) boost to plant production, which averaged 979,000 bpd during the week reviewed, a one-month high. During the four weeks ended Jan. 16, ethanol production plants averaged output at 970,000 bpd, 68,000 bpd, or 7.5%, more than during the same period in 2014.

Refiner and blender net inputs of ethanol increased 22,000 bpd to an 837,000 bpd three-week high during the week reviewed. During the four weeks ended Jan. 16, net ethanol inputs for blending averaged 824,000 bpd, up 33,000 bpd or 4.2% from year prior.

Gasoline supplied to market, also referred to as implied demand, slipped 23,000 bpd to 8.851 million bpd. Implied gasoline demand was sharply higher during the first two weeks of 2015, averaging 8.86 million bpd, 790,000 bpd or 9.8% more than during the first half of January 2014.

(BM/AG)

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