Ethanol Demand up Third Straight Week

Source: By DTN Staff • Posted: Thursday, January 28, 2021

OAKHURST, N.J. (DTN) — Total domestic ethanol inventories were again drawn down slightly as demand for the fuel continued to edge higher, data released by the Energy Information Administration on Wednesday, Jan. 27, show.

Blending activity, a measure of demand, climbed for a third week, up 7,000 barrels per day (bpd) to 785,000 bpd, although down 10.1% from the same week in 2020 data show. Blending activity during the four weeks ended Jan. 22 averaged 758,000 bpd, 90,000 bpd below the comparable year-ago period.

Domestic ethanol supply declined to 23.602 million barrels (bbl) from 23.628 million bbl the week prior while down 2.5% from supply on hand the same time last year.

EIA reported East Coast PADD 1 added 468,000 bbl to 8.249 million bbl while Midwest PADD 2 supply fell 184,000 bbl to 7.911 million bbl. At the Gulf Coast PADD 3, stocks declined a third week, down 185,000 bbl to 4.228 million bbl, and stocks along the West Coast PADD 5 stocks dropped 134,000 bbl to 2.841 million bbl.

Ethanol plant production dropped 12,000 bpd or 1.3% in the week ended Jan. 22 to 933,000 bpd, 9.3% lower than the corresponding week in 2020. Four-week average output dropped 121,000 bpd against year ago to 938,000 bpd.

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