Ethanol Supply, Production, Demand Up

CRANBURY, N.J. (DTN) -- The Energy Information Administration reported greater supply, production and blending demand for the week-ended Dec. 11 on Wednesday, Dec. 16, in its closely watched weekly supply report, with domestic ethanol supply climbing 500,000 barrels (bbl) to a 20.3 million bbl six-month high.

The inventory gain came as U.S. ethanol production plants ramped up output 7,000 barrels per day (bpd) to 1.0 million bpd, the second-highest weekly production rate on record, with the previous high set two weeks prior at 1.007 million bpd.

Supply gains were reported for all regions except the PADD 3 Gulf Coast, where inventory was drawn down 200,000 bbl to 3.8 million bbl. Ethanol supply in the producer PADD 2 Midwest region shot up 400,000 bbl to 6.7 million bbl, while 100,000 bbl higher along both the PADD 1 East Coast and PADD 5 West Coast to 6.5 million bbl and 2.9 million bbl, respectively. A 100,000 bbl supply gain to 400,000 bbl for the PADD 4 Rocky Mountain region was also reported.

EIA said 32,000 bpd of ethanol was imported along the West Coast for the week reviewed following no imports during the preceding week and 36,000 bpd of imports accepted by the West Coast in late November.

The climbing supply came alongside a 41,000 bpd increase in refiner and blender net inputs of ethanol for the week profiled to an 890,000 bpd seven-week high.

Implied gasoline demand for the week-ended Dec. 11 dropped 200,000 bpd from a better than three-month high to 9.22 million bpd. Cumulatively through Dec. 11, gasoline supplied to the primary wholesale market averaged 9.151 million bpd, 313,000 bpd, or 3.5% above the comparable year-ago period, and the highest demand rate since 2008.