CRANBURY, N.J. (DTN) -- Ethanol supply in the United States was drawn down 800,000 barrels (bbl) to the lowest inventory level in 2019 at 23.2 million bbl, narrowing a year-on-year surplus 300,000 bbl despite domestic production inching over 1 million barrels per day (bpd) during the first week of the second quarter, according to data released Wednesday, April 10, by the Energy Information Administration.
U.S. inventory is up 1.4 million bbl or 6.4% against year ago, with weekly draws reported for the PADD 1 and 5 Eastern and Western coasts and in the PADD 2 Midwest producer region. Ethanol supply increased in PADD 3 Gulf Coast market and was unchanged in the PADD 4 Rocky Mountain region at 300,000 bbl.
PADD 1 inventory dropped 400,000 bbl to 7.5 million bbl although 700,000 bbl or 10.3% above the year ago stock level, with PADD 5 stocks down 100,000 bbl to 2 million bbl, which is 700,000 bbl lower than year prior. In PADD 2, inventory was drawn down 400,000 bbl to 8.9 million bbl, although 600,000 bbl or 7.2% more than year prior. PADD 3 stocks increased 200,000 bbl to 4.5 million bbl, 800,000 bbl more than this time in 2018.
Ethanol plant production remained resilient despite record flooding in the heart of producer country that continues to restrain transportation of supply. The 3,000 bpd boost in output put output at 1.002 million bpd during the week ended April 5, although down 32,000 bpd or 3.8% against year ago. Four week averaged output was 995,000 bpd, down 45,000 bpd against the comparable year ago period.
Blending demand perked up, with refiner and blender net inputs of ethanol increasing 10,000 bpd to 919,000 bpd, up 15,000 bpd against year ago. During the four weeks ended April 5, blending demand averaged 914,000 bpd, up 8,000 bpd against the year-ago rate.
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