Ethanol Stocks Surge to 7-Week High

NEW YORK (DTN) -- U.S. ethanol inventories continued to build last week, increasing 697,000 barrels (bbl) to a seven-week high of 21.342 million bbl during the week-ended April 17, new data from Energy Information Administration showed.

The nationwide ethanol stock build coincided with data showing a rebound in domestic production, a decline in demand and the largest amount of ethanol imported since August 2013.

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Compared to a year ago, total ethanol supplies are 4.8 million bbl, or 29.2%, higher.

Regionally, the biggest stock build was recorded in the PADD 3 Gulf Coast, rising 500,000 bbl to 4.0 million bbl. PADD 2 Midwest and PADD 5 West Coast each saw their supplies up 100,000 bbl to 6.6 million and 2.5 million bbl, respectively. PADD 1 East Coast supplies held steady at 8.0 million bbl, holding at the highest stock level since the week-ended June 29, 2012.

The EIA data showed domestic production rising 6,000 barrels per day (bpd) to 930,000 bpd for the week profiled, bouncing off a nearly six-month low. Last week's output was up 2.0% versus a year earlier.

EIA data also showed the United States imported 53,000 bpd of ethanol last week, the first week since the week-ended Dec. 26, 2014, that ethanol imports have been reported, and the largest amount of U.S. ethanol imports since August 2013.

Blender inputs, a proxy for ethanol demand, declined 6,000 bpd to 879,000 bpd for the week-ended April 17, while up 3.0% year over year.

Implied demand for motor gasoline rose 271,000 bpd last week to 9.185 million bpd, 9.0% higher than the same week last year.

George Orwel can be reached at george.orwel@dtn.com

(BM/AG)

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