EIA: Ethanol Stocks Up 700,000 Barrels

Ethanol Blending Demand Falls for Week Ended Sept. 13

CRANBURY, N.J. (DTN) -- Domestic ethanol inventory nationwide increased a sharp 700,000 barrels (bbl) from an 11-week low to 23.2 million bbl during the week ended Sept. 13, returning more than half of the 1.3 million bbl in supply drawn down during the first week of September, the Energy Information Administration reported on Wednesday, Sept. 18.

The large build coincided with a 25,000-barrel-per-day (bpd) decline in refinery and blender net inputs to 905,000 bpd during the week profiled, more than the 20,000 bpd decrease in domestic ethanol production with last week's output rate at 1.003 million bpd.

EIA reported a steep 600,000 bbl build in PADD 1 East Coast inventory to 7.5 million bbl, up 300,000 bbl, or 4.2%, against year ago. PADD 3 Gulf Coast stocks increased 100,000 bbl to 5.1 million bbl, 500,000 bbl, or 10.9%, more than during the comparable week a year ago. A 100,000 bbl decline in PADD 5 West Coast stocks to 2.8 million bbl offset the supply expansion in the Gulf Coast market, with West Coast stocks flat year on year. Midwest PADD 2 inventory was unchanged at 7.4 million bbl, down 300,000 bbl, or 3.9%, against a year ago.

Ethanol plants in the United States produced 1.003 million bpd during the week profiled, down 48,000 bpd, or 4.6%, against year ago, with the four-week average at 1.019 million bpd down 38,000 bpd, or 3.6%, from the same period in 2018.

Blending demand at 905,000 bpd during the second week of September is 23,000 bpd, or 2.5%, below the comparable week a year ago, with a 22,000 bpd falloff in PADD 1 East Coast blending activity leading to the steep decline. At 318,000 bpd, ethanol blending demand along the East Coast was 27,000 bpd or 7.8% below the year-ago blend rate last week. During the four-week period ended Sept. 13, blending demand was essentially flat with a year ago at 936,000 bpd.