Ethanol production for the week ended May 27 jumped 57,000 barrels per day (bpd) to 1.071 million bpd. That was the highest weekly production tally since the week ended Dec. 10 and 3.6% above the corresponding week last year.
Ethanol stocks declined 751,000 barrels, despite the surge in production, to 22.961 million barrels, the lowest since the first week of this year.
Gasoline demand is still about flat with year-ago. PADD 2 (Midwest) gasoline supply is the lowest May level ever. Industry sources say demand isn’t falling as low as supply, signaling high prices aren’t curbing demand. Gasoline prices will continue to push higher until demand slows.
