Ethanol Inventories Fall

EIA: Ethanol Blending Demand Continued Higher Last Week

OAKHURST, N.J. (DTN) -- Domestic ethanol inventories posted the first draw in five weeks through Dec. 17 as data show another weekly gain in implied demand while production of the fuel continued lower, the latest data from the Energy Information Administration show.

Blending activity held higher a second week, up 3,000 barrels per day (bpd) to 882,000 bpd as of Dec. 17, 10% above the same time in 2020, while blending activity during the four weeks ended Dec. 17 averaged 877,000 bpd versus 788,000 bpd during the same four weeks in 2020.

Midwest blending dipped 1,000 bpd in the week under review, while at the East Coast, demand increased 5,000 bpd and Gulf Coast demand gained 2,000 bpd on the week. For the four weeks ended Dec. 17, EIA data show PADD 2 blending activity was at 235,000 bpd while PADD 1 activity was 318,000 bpd and PADD 3 demand was 148,000 bpd.

The agency reported overall ethanol production declined a second week, falling 36,000 bpd to 1.051 million bpd, about 8% above the same week in 2020.

Midwest PADD 2 plant production also continued lower, sliding 34,000 bpd to 991,000 bpd as of Dec. 17, 6.7% above output during the corresponding week last year.

EIA reported total ethanol inventories declined for the first time in five weeks, down 178,000 barrels (bbl) to 20.705 million bbl.

East Coast supply posted the first draw in three weeks, easing 44,000 bbl to 5.990 million bbl while Midwest stocks dipped 4,000 bbl to 8.140 million bbl.

Gulf stocks fell for the first time in four weeks, down 132,000 bbl to 3.729 million bbl as of Dec. 17 and West Coast PADD 5 supply added 30,000 bbl to 2.453 million bbl.