Ethanol production falls to 6 year low, stocks set new record

U.S. ethanol production fell by more than 16 percent the week ending March 27 to an average of 840,000 barrels per day, the lowest level since September 2013, according to data released by the U.S. Energy Information Administration on April 1.

The reduction is primarily the result of falling fuel demand caused by the COVID-19 pandemic. Additional reductions are likely in upcoming weeks as several plants have indicated they will slow or idle production in April.

Ethanol is not the only liquid fuel being impacted by COVID-19 and falling demand. Petroleum data released by the EIA on April 1 illustrates how fuel demand has begun falling as a result of COVID-19. Finished motor gasoline supplied for the week ending March 27 fell to an average of 6.659 million barrels per day, the lowest level since January 1994.

While ethanol production is down, weekly ethanol ending stocks set a new record at 25.717 million barrels for the week ending March 27, up from 24.14 million barrels the previous week. The new record marks the first time stocks have surpassed the 25 million barrel mark.