Ethanol Stocks Spike; Production Drops

NEW YORK (DTN) -- Ethanol stocks in the United States rose by 500,000 barrels (bbl), or 2.3%, to 20.7 million bbl in the week-ended June 12 while up 16.1% year on year, according to a report released Wednesday, June 17, by the U.S. Energy Information Administration.

Most of the stock change occurred along PADD 3 Gulf Coast, where a massive supply build of 500,000 bbl was seen last week.

The EIA report showed domestic production fell 12,000 barrels per day (bpd), or 1.2%, to 980,000 bpd last week, down from a 5-1/2 month high for the prior week. Year-on-year output was up 0.7%.

Blender inputs, a gauge for ethanol demand, rebounded last week, up week-on-week by 28,000 bpd, or 3.2%, to 912,000 bpd, while 2.3% higher year on year.

EIA data showed implied demand for gasoline remained volatile, down 424,000 bpd to 9.176 million bpd last week. Year-over-year, implied demand is down 0.9% for the week reviewed, although running 3.2% higher cumulatively in 2015 compared with 2014.

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

(BM/AG)

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