Ethanol production up 1.9% over previous week

In Washington, D.C., ethanol production increased 1.9%, or 17,000 barrels per day (b/d), to 931,000 b/d—equivalent to 39.10 million gallons daily, according to EIA data analyzed by the Renewable Fuels Association. Production remains tempered due to COVID-19 disruptions, coming in 12.7% below the same week in 2019. The four-week average ethanol production rate increased 2.6% to 910,000 b/d, equivalent to an annualized rate of 13.95 billion gallons.

Ethanol stocks moved fractionally lower, down 0.1% to 20.6 million barrels and 11.8% below year-ago volumes. Inventories declined in the East Coast (PADD 1), Midwest (PADD 2), and Rocky Mountains (PADD 4), with larger volumes building in the Gulf and West Coasts.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, contracted by 1.3% to 8.648 million b/d (132.57 bg annualized) in the week following the July 4 holiday. Gasoline demand was 6.1% lower than a year ago.

Refiner/blender net inputs of ethanol shrank by 3.6% to 819,000 b/d, equivalent to 12.56 bg annualized and 10.0% below the year-earlier level.

There were zero imports of ethanol recorded after 36,000 b/d hit the books the prior week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of May 2020.)