EIA: US Ethanol Stocks Drop 5% as Output at New Record Low

CRANBURY, N.J. (DTN) — Ethanol stocks in the United States tumbled 1.4 million bbl or 4.9% from a record high to a 26.3 million bbl four-week low as domestic production was throttled back 26,000 bpd or 4.6% to a fresh record low at 537,000 bpd during the week-ended April 24, the Energy Information Administration reported this morning.

U.S. ethanol production has fallen every week since the end of February, as operators contend with demand destruction amid government responses in slowing the spread of the COVID-19 pandemic. Domestic plant production is down 487,000 bpd or 47.6% against year ago, with the four week average through April 24 at 585,000 bpd down 437,000 bpd or 42.8% against the comparable year-ago period.

Blending demand increased for the third consecutive week after falling to a 502,000 bpd 12-year low in early April, with EIA reporting net refiner and blender input averaging 583,000 bpd last week, up 60,000 bpd or 11.5%, which compares with a 928,000 bpd blend rate year ago. During the four weeks ended April 24, ethanol blending averaged 529,000 bpd, down 396,000 bpd or 42.8% against the same four-week period in 2019.

The increase in blending activity coincided with a 549,000 bpd jump in implied gasoline demand, with EIA reporting gasoline supplied to the U.S. market last week at 5.86 million bpd.

Blending activity increased in all PAD districts, with East Coast PADD 1 up 21,000 bpd at 203,000 bpd accounting for the largest increase in the countrywide data. Midwest PADD 2 blending activity increased 17,000 bpd to 162,000 bpd, with Gulf Coast PADD 3 net ethanol inputs up 12,000 bpd to 102,000 bpd. West Coast PADD 5 ethanol inputs increased 9,000 bpd to 97,000 bpd during the week reviewed.

Ethanol supply in PADD 1 was drawn down 300,000 bbl to 9.4 million bbl last week, although is up 1.7 million bbl against year ago, with PADD 2 stock levels down 200,000 bbl to 8.2 million bbl, matching year prior. PADD 3 ethanol inventory fell 600,000 bbl to 5.3 million bbl, 1.2 million bbl above year ago, with PADD 5 stocks down 300,000 bbl to 3 million bbl, 600,000 bbl above year ago.

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