Ethanol weekly production ticks up 4.8%, but four-week average remains low

In Washington, D.C., ethanol production grew 4.8%, or 42,000 barrels per day (b/d), to 923,000 b/d—equivalent to 38.77 million gallons daily, according to EIA data analyzed by the Renewable Fuels Association. However, the four-week average ethanol production rate declined 0.4% to 909,000 b/d, equivalent to an annualized rate of 13.93 billion gallons (bg).

Ethanol stocks ticked 0.1% lower to 19.7 million barrels, which was 7.3% below year-ago volumes and the smallest reserves since the end of 2016. Inventories thinned across all regions—including a sizeable (0.7 million barrels) disappearance in the Gulf Coast (PADD 3)—except for the East Coast (PADD 1) and Midwest (PADD 2).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, expanded by 4.3% to 8.90 million b/d (136.38 bg annualized). Gasoline demand remained 6.0% lower than a year ago.

Conversely, refiner/blender net inputs of ethanol receded by 2.0% to 823,000 b/d, equivalent to 12.62 bg annualized. This was 10.3% below the year-earlier level as a result of the continuing effects of the COVID-19 pandemic.

There were zero imports of ethanol recorded after 16,000 b/d hit the books the prior week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of August 2020.)