EIA: Ethanol production down 2%, stocks increase by 2%

By Erin Voegele | December 02, 2020

U.S. fuel ethanol production fell by nearly 2 percent the week ending Nov. 27, according to data released by the U.S. Energy Information Administration on Dec. 2. Weekly ending stocks increased by 2 percent.

U.S. ethanol production fell to 974,000 barrels per day the week ending Nov. 27, down 16,000 barrels per day when compared to the 990,000 barrels per day of production reported for the previous week. When compared to the 1.06 barrels per day of production reported for the same period of last year, production was down 86,000 barrels per day.

Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuels started to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.

Weekly ending stocks of fuel ethanol increased to 21.24 million barrels the week ending Nov. 27, up 374,000 barrels when compared to the 20.866 million barrels of stocks reported for the previous week. Stocks of fuel ethanol trended down for several months after reaching a record high of 27.289 million barrels the week ending April 17 and remained at levels below those reported for the same period of last year through mid-November. Ending stocks, however, have been growing in recent weeks. When compared to the same week of last year, ethanol stocks for the week ending Nov. 27 were up 601,000 barrels.