Record ethanol production in U. S. slows ahead of summer driving demand
U.S. ethanol production has surged since late 2024 due to strong exports and steady domestic demand but has dipped recently. Despite this, large stockpiles may cushion short-term impacts. With peak summer fuel demand approaching, future trends in exports and travel will be key. Recent output averaged 1.026 million barrels daily, strong but below historic highs.
The U.S. has churned out record levels of ethanol since late 2024, largely due to a rise in exports and steady domestic demand. But Reuters said output has dropped from record levels during the last two weeks, which coincides with the buildup of the summer driving season. The U.S. does have large stockpiles of ethanol that can offset some of the lower production levels in the short term.
But exports and domestic travel trends will have to be watched in the coming weeks and months when fuel demand typically hits its highest point of the year. During the last four weeks ending on May 23, America’s ethanol production averaged about 1.026 million barrels per day. That’s the best for the period in the last six years but behind the levels of six and seven years ago. U.S. gasoline demand hasn’t been as impressive, with rates similar to year-ago levels.
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Source : Iowa Agri Business Radio Network
