<article><p class="lead">US ethanol inventories built for a fourth straight week and struck their highest level since March while production rose, according to the latest data from the Energy Information Administration (EIA).</p><p>Domestic ethanol stocks for the week ended 18 June rose from the week before by 2.5pc to 21.1mn bl, their highest since the week ended 19 March, when they were at 21.8mn bl. Stocks rose in every region except for the Gulf coast, where they fell by 5.6pc to 4mn bl. </p><p>Year on year, stocks were higher by 0.4pc as the ethanol industry cut back on production in the first half of 2020 to lower stocks amid sharply reduced fuel demand prompted by Covid-19 restrictions and the economic slump. Compared with the same week of 2019, stocks were lower by 2.1pc </p><p>US ethanol production rose week on week by 2.2pc to 1.04mn b/d. The midcontinent led gains, rising by 2.3pc to 1mn b/d. </p><p>Compared with a year earlier, production was higher by 17.4pc, even though output was 2.2pc lower than the same week two years ago.</p><p>Implied gasoline demand increased by 0.9pc to 9.4mn b/d from the week before. Compared with the same week two years ago, demand was down by 0.3pc.</p><p>Ethanol blending rose by 1.3pc week on week to 922,000 b/d, its highest level since mid-May. Compared with the same week of 2019, blending was 3pc lower.</p><p><i>By Thom Dwyer</i></p><p><table class='tbl-excel'><tr><td class='tbl-header' colspan='5'>EIA ethanol production and stocks</td><td class='tbl-header tbl-right tbl-italic'></td></tr><tr><td class='tbl-columnheader tbl-bold tbl-left'></td><td class='tbl-columnheader tbl-bold tbl-right'>18 Jun</td><td class='tbl-columnheader tbl-bold tbl-right'>Week ago</td><td class='tbl-columnheader tbl-bold tbl-right'>Change</td><td class='tbl-columnheader tbl-bold tbl-right'>Year ago</td><td class='tbl-columnheader tbl-bold tbl-right'>Change</td></tr><tr><td class='tbl-rowspace' colspan='6'></td></tr><tr><td class='tbl-left tbl-bold'><span class="tbl-bold">Average weekly US ethanol production </span><span class="tbl-bold tbl-italic">&#39;000 b/d</span></td><td class='tbl-right'>1,048</td><td class='tbl-right'>1,025</td><td class='tbl-right'>23</td><td class='tbl-right'>893</td><td class='tbl-right'>155</td></tr><tr><td class='tbl-left'>East coast (PADD 1)</td><td class='tbl-right'>10</td><td class='tbl-right'>11</td><td class='tbl-right'>-1</td><td class='tbl-right'>11</td><td class='tbl-right'>-1</td></tr><tr><td class='tbl-left'>Midcontinent (PADD 2)</td><td class='tbl-right'>1,002</td><td class='tbl-right'>979</td><td class='tbl-right'>23</td><td class='tbl-right'>857</td><td class='tbl-right'>145</td></tr><tr><td class='tbl-left'>Gulf coast (PADD 3)</td><td class='tbl-right'>16</td><td class='tbl-right'>17</td><td class='tbl-right'>-1</td><td class='tbl-right'>8</td><td class='tbl-right'>8</td></tr><tr><td class='tbl-left'>Rocky Mountains (PADD 4)</td><td class='tbl-right'>10</td><td class='tbl-right'>10</td><td class='tbl-right'>0</td><td class='tbl-right'>10</td><td class='tbl-right'>0</td></tr><tr><td class='tbl-left'>West coast (PADD 5)</td><td class='tbl-right'>9</td><td class='tbl-right'>8</td><td class='tbl-right'>1</td><td class='tbl-right'>8</td><td class='tbl-right'>1</td></tr><tr><td class='tbl-left tbl-bold'><span class="tbl-bold">Ending US ethanol stocks </span><span class="tbl-bold tbl-italic">&#39;000 b</span><span class="tbl-bold">l</span></td><td class='tbl-right'>21,120</td><td class='tbl-right'>20,602</td><td class='tbl-right'>518</td><td class='tbl-right'>21,034</td><td class='tbl-right'>86</td></tr><tr><td class='tbl-left'>East coast (PADD 1)</td><td class='tbl-right'>6,629</td><td class='tbl-right'>6,435</td><td class='tbl-right'>194</td><td class='tbl-right'>6,854</td><td class='tbl-right'>-225</td></tr><tr><td class='tbl-left'>Midcontinent (PADD 2)</td><td class='tbl-right'>7,610</td><td class='tbl-right'>7,372</td><td class='tbl-right'>238</td><td class='tbl-right'>6,956</td><td class='tbl-right'>654</td></tr><tr><td class='tbl-left'>Gulf coast (PADD 3)</td><td class='tbl-right'>3,958</td><td class='tbl-right'>4,195</td><td class='tbl-right'>-237</td><td class='tbl-right'>4,617</td><td class='tbl-right'>-659</td></tr><tr><td class='tbl-left'>Rocky Mountains (PADD 4)</td><td class='tbl-right'>370</td><td class='tbl-right'>353</td><td class='tbl-right'>17</td><td class='tbl-right'>371</td><td class='tbl-right'>-1</td></tr><tr><td class='tbl-left'>West coast (PADD 5)</td><td class='tbl-right'>2,553</td><td class='tbl-right'>2,247</td><td class='tbl-right'>306</td><td class='tbl-right'>2,236</td><td class='tbl-right'>317</td></tr><tr><td class='tbl-footer tbl-right tbl-italic' colspan='6'>— EIA</td></tr></table></article>
