Record U.S. Ethanol Production Hits New High as Inventories Decline
U.S. ethanol production hit a record 1.131 million barrels per day in the week ending December 12, driven by strong Midwest output and steady demand. Regional variations persisted, but inventories fell to 22.353 million barrels, indicating consumption kept pace with supply and supporting expectations for firm year-end ethanol demand.
The Energy Information Administration said ethanol output jumped to a new record high in the seven days ending on December 12. U.S. production rose to an average of 1.131 million barrels a day, which the agency said is up from 1.105 million the previous week and eclipsed a record set two weeks earlier.
In the Midwest, output rose to an average of 1.078 million barrels a day, up from 1.046 million the prior week. That was all the gains for the week. East Coast production was steady at 11,000 barrels a day, on average, for the fourth-straight week. West Coast output held steady at 9,000 barrels a day. Gulf Coast production dropped by 4,000 barrels to an average of 28,000 per day, and Rocky Mountain output dropped by 2,000 barrels a day to 9,000. Inventories during the week fell to 22.353 million barrels.
Additional analysts noted that continued strong margins and steady demand from both domestic blenders and export buyers have supported elevated production levels, even as regional variations persist. The drawdown in inventories suggests consumption is keeping pace with output, reinforcing expectations for a firm finish to year-end ethanol demand.
To Read more about Ethanol Industry & Bio Energy News, continue reading Agriinsite.com
Source : American AG Network
