Ethanol Stocks Plunge to 5-Month Low
NEW YORK (DTN) -- The Energy Information Administration released data Wednesday, Oct. 29, showing ethanol inventories in the United States plunged last week for the fourth straight week, drawn down to a five-month low despite a rise in plant production.
Total ethanol stocks were drawn down about 900,000 barrel (bbl), or 5%, to 17.0 million bbl during the week-ended Oct. 24, the lowest stock level since the week-ended May 16 when supplies were below 17.0 million bbl.
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The fact that inventories fell despite higher domestic production and a marginal increase in domestic demand supports speculation more barrels are being exported overseas.
Although domestic ethanol stocks have declined sharply since they reached an 18-month high of 18.828 bbl during the week-ended Sept. 26, they remain 2.1 million bbl, or 13.9% above a year ago.
Regional stock draws were seen in PADD 1 East Coast and PADD 3 Gulf Coast, with those regions posting stock draws of 500,000 bbl and 100,000 bbl, respectively, for the week to 6.1 million bbl and 2.7 million bbl.
Plant production increased 41,000 barrels per day (bpd), or 4.6%, last week to 937,000 bpd while up 2.9% year-over-year, with four-week average output edging up 2.1%.
Blender inputs, a proxy for ethanol demand, increased 2,000 bpd to 878,000 bpd last week while up 0.9% year-over-year, with four-week average demand up 1.5%.
(BM/AG)
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