US ethanol stockpiles declined by 500,000 bl for the week ended 8 August, with a 7pc decline in US Atlantic coast inventories accounting for the bulk of the draw, according to the Energy Information Administration (EIA). Output of US ethanol climbed 29,000 b/d to 931,000 b/d, while the US recorded no imports for the second consecutive week.
US spot markets rallied sharply today as the inability of production levels to reach the 950,000 b/d mark and the PADD 1 draw were interpreted as bullish by market participants. Prices climbed more than 10¢/USG in the New York Harbor, where inventories reached just 6mn bl, as the draw highlighted the severity of the impact of logistical issues related to rail transport. The US Atlantic coast is principally a rail-supplied market.
Gains of 5-8¢/USG were recorded across major US market centers, with the Burlington Northern line leading rail markets higher.
Inventories at the US Gulf coast were little changed at 3.2mn bl while west coast stockpiles edged up just 100,000 bl. Midcontinent inventories edged down 100,000 bl amid rail delays impacting the crucial Chicago terminal region.
Total US finished motor gasoline rose by 25,000 b/d to 10.06mn b/d from the previous week. Ethanol-blended gasoline made up 84.72pc of the total gasoline pool, down 2.56pc from the previous week.
May ethanol exports were down 20.32pc from April, with a decrease of 322,000bl reported leaving the US, dropping overall exports to 1.263mn bl. The largest declines came from the midcontinent which saw export levels drop 372,000bl for the month. Exports were down for a second consecutive month, having fallen 876,000 bl from levels seen during March when the US exported 2.139mn bl.
zc/dcb
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