US ethanol stocks rise 7%, up for 8 weeks in a row

26 January 2011 20:27  [Source: ICIS news]

HOUSTON (ICIS)--US fuel ethanol inventories rose by 7% last week, the eighth weekly increase in stockpiles of the biofuel, the US Energy Information Administration (EIA) said on Wednesday.

Ethanol stocks stood at 19.04m bbl in the week ended 21 January, up from 17.80m bbl a week earlier, the government said.

The rise in inventory levels was heard to be caused by logistics delays resulting from bad weather in some parts of the US.

“Logistics issues and weather, basically in New York, are a fact for sure,” a source said.

But market participants also said demand for prompt material was weak and that was leaving the market “way oversupplied”, according to one source.

“A lot of producers and even traders are tanking product to take it off the market and wait for a better time to sell,” the source said.

US production of the biofuel remained on an uptrend, according to the EIA, which showed ethanol output last week rising by 1% to 922,000 bbl/day.

US ethanol production in December averaged 920,000 bbl/day, up by 3.7% from 887,000 bbl/day in November.

US weekly ethanol inventories – m bbl (EIA)

21 Jan

14 Jan

7 Jan

31 Dec

24 Dec

19.04

17.80

17.09

16.86

16.84

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By: William Lemos
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