Ethanol Production Rebounds from Recent Collapse


Ethanol production rebounded last week, according to data from the Energy Information Administration and the Renewable Fuels Association. For the week ending February 26, ethanol production scaled up 29.0 percent following the prior week lull, or 191,000 barrels per day, to 849,000, equivalent to 35.6 million gallons daily. Production remained 21.3 percent below the same week last year. The four-week average ethanol production rate decreased 2.6 percent, equivalent to an annualized rate of 12.85 billion gallons. Meanwhile, Ethanol stocks declined 1.6 percent, which was 10.2 percent below a year ago. Inventories drew down across all regions except the Midwest. The volume of gasoline supplied to the U.S. market, a measure of implied demand, recovered by 13.1 percent to 124.9 billion gallons. Gasoline demand was 11.3 percent less than a year ago. Refiner and blender net inputs of ethanol improved by 12.3 percent to a nine-week, and there were zero imports of ethanol reported for the week.