Weekly ethanol production fell for the second consecutive week to 1.028 million barrels, down 13,000 barrels (PADD2 down 13k), and stocks shot up 1.384 million barrels to 22.518 million, highest since mid- February 2021. Traders were looking for a 1,000 barrel increase in production and stocks to be up 243,000 barrels. Note nearly every week in history we see ethanol stocks shoot up more than 1 million barrels, they tend to correct (draw) the following week or two. We don’t read too much into this report today. Ethanol in-transit during the previous weeks when production was running much higher than 1.028 million was likely finally accounted in stocks. US gasoline demand improved from 9.283 million barrels to 9.295 million from the previous week and is 8.7% higher than this time last year and 3.9% lower than 2019. The ethanol blend rate was 91.7% for finished motor gasoline, down from 92.2% previous week.
US DoE Crude Oil Inventories (W/W) 16-Jul: 2107K (est -4500K; prev -7896K)
– Distillate Inventories (W/W): -1349K (est 650K; prev 3657K)
– Cushing Crude Inventories (W/W): -1347K (prev -1589K)
– Gasoline Inventories (W/W): -121K (est -1050K; prev 1038K)
– Refinery Utilization (W/W): -0.4% (est 0.5%; prev -0.4%)
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