Ethanol Demand Retreats Again

By DTN Staff

OAKHURST, N.J. (DTN) --- Ethanol demand in the United States continued lower in the fourth week of August, falling 1.4%, Energy Information Administration data released midmorning Wednesday show, while production and inventory were also down for the week.

The agency reports blending activity fell a second week, dropping 13,000 barrels per day (bpd) through Aug. 26 to 906,000 bpd, down 2.2% from the same time in 2021. Blending demand has fallen 23,000 bpd from the one-year high two weeks ago, the data show.

Refiner and blender net inputs along the East Coast PADD 1 fell 2,000 bpd to 327,000 bpd as of Aug. 26 while down a like amount in the Midwest PADD 2 to 248,000 bpd, off 4,000 bpd in Gulf Coast PADD 3 to 148,000 bpd and 4,000 bpd lower at the West Coast PADD 5 at 150,000 bpd.

EIA reports domestic production ethanol dropped 17,000 bpd or 1.7% to 970,000 bpd, the lowest level since the end of April yet 7.2% above than the same week last year.

Midwest ethanol production at 911,000 bpd through Aug. 26 was down 17,000 bpd on the week to the lowest level since the week ended April 22.

Data show domestic ethanol stocks down following two weeks of builds, falling 274,000 barrels (bbl) in the week profiled to 23.533 million bbl, 11.4% more than same week a year ago.

East Coast ethanol inventory declined 175,000 bbl to 7.543 million bbl through Aug. 26 and Midwest stocks decreased 81,000 bbl to 8.584 million bbl.

At the Gulf Coast, data show ethanol inventory down a second week, off 42,000 bbl to 4.291 million bbl while stock levels along the West Coast PADD 5 added 25,000 bbl to 2.747 million bbl.

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