Ethanol and gasoline prices surged higher Thursday following inventory levels which dropped lower before the holiday weekend according to the latest EIA report released Thursday morning.
The latest ethanol inventories fell 8.4 million gallons at the end of last week. Gasoline and crude oil also tumbled lower during the week which created additional buyer support through the market.
It is uncertain if additional support will be seen through the rest of September as holiday travel has wrapped up and post-hurricane storm system activity may calm the market, leaving activity and traders pulling away from the market. The reaction to the falling inventory was aggressive prices that may be seen through the end of the week. This could spark longer-term market reactions and could bring additional support to ethanol markets.
Rick Kment can be reached at firstname.lastname@example.org
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