Good Morning,
According to EIA data analyzed by the Renewable Fuels Association for the week ending September 25, ethanol production scaled back by 2.8%, or 25,000 barrels per day (b/d), to 881,000 b/d—equivalent to 37.00 million gallons daily and the smallest output in fifteen weeks. The four-week average ethanol production rate declined 1.2% to 913,000 b/d, equivalent to an annualized rate of 14.00 billion gallons (bg).
Ethanol stocks dropped by 1.5% to 19.7 million barrels, which was 15.2% below year-ago volumes and the smallest reserves since the end of 2016. Inventories thinned across all regions except the Gulf Coast (PADD 3).
The volume of gasoline supplied to the U.S. market, a measure of implied demand, lifted 0.2% to 8.53 million b/d (130.75 bg annualized). Gasoline demand remained 6.7% lower than a year ago.
Refiner/blender net inputs of ethanol ticked up 0.1% to 840,000 b/d, equivalent to 12.88 bg annualized. This was 9.0% below the year-earlier level as a result of the continuing effects of the COVID-19 pandemic.
Imports of ethanol arriving into the West Coast were 16,000 b/d, or 4.70 million gallons for the week. This marks the ninth week since the start of July that imports were reported. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of July 2020.)
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