Energy Information Administration (EIA) data released recently shows slightly lower domestic ethanol inventory in the week ended May 20 amid progressively higher demand, which climbed to a near nine-month high.
Blending activity nationally also increased for a fourth consecutive week, up 4,000 barrels per day (bpd) or 0.4% to 915,000 bpd in the week profiled, the highest blend rate since the last week of August 2021. Refiner and blender inputs, a gauge of demand, last week were 1% above the comparable week in 2021.
Data show refiner and blender net inputs rose 1,000 bpd along the East Coast Petroleum Administration for Defense District 1 (PADD) to 329,000 bpd while up 3,000 bpd in the Midwest PADD 2 to 250,000 bpd while the Gulf Coast PADD 3 rose 2,000 bpd to 155,000 bpd and the West Coast PADD 5 eased 1,000 bpd to 150,000 bpd.
EIA reported production at U.S. ethanol plants jumped 33,000 bpd, or 3.3%, to 1.024 million bpd through May 20, an eight-week high, and 1.3% above the same week in 2021. Plant output averaged 991,000 bpd during the four weeks ended May 20, 3,000 bpd lower than during the comparable four weeks a year ago.
Definition: bbl means one stock tank barrel or 42 U.S. gallons. Domestic ethanol inventory decreased 79,000 bbl last week to 23.712 million bbl, 24.7% higher than the same week in 2021.
East Coast ethanol inventory rose for the first time in five weeks, up 121,000 bbl to 7.527 million bbl and Midwest stocks fell a sixth week, down 379,000 bpd to 9.284 million bbl, the lowest level since last week of December 2021.
Ethanol inventory at the Gulf Coast increased a fourth week, rising 111,000 bbl to an eight-week high 4.245 million bbl, and supply at the West Coast PADD 5 supply increased a fourth week, up 73,000 bbl to 2.3 million bbl, a six-week high.
Editor’s Take:
That the demand for ethanol is up, signals good news for U.S. corn producers. Ethanol is one method of helping to reduce the impact of continuously rising oil costs. However, with gasoline prices skyrocketing in recent weeks, it is eventually bound to have an impact on consumer driving habits and overall consumption. That could dampen the demand for ethanol as well. That said, we will continue watching the stats and reporting them to you.
