Grainnet

Washington, DC—Ethanol production continued to grow in September, averaging 441,000 barrels per day (b/d) according to the Energy Information Administration.

Ethanol demand, despite the economic advantage ethanol had over gasoline, fell to 422,000 b/d representing a monthly decrease from August of 54.2 million gallons.

At the same time, stocks of ethanol rose in September by 50.4 million gallons to an all-time high.

To date, the U.S. is producing an average of 406,000 b/d, with average demand exceeding production at nearly 429,000 b/d.

The RFA released the following statistics:

September 2007 Statistics (mg = million gallons; b/d = barrels per day)

Fuel Ethanol Production... 555.3 mg... 441,000 b/d

Fuel Ethanol Use... 531.5 mg... 422,000 b/d

Fuel Ethanol Stocks... 483.4 mg... 27.3 days of reserve

Fuel Ethanol Exports... 0.0mg^... n/a

Fuel Ethanol Imports... 26.6 mg*... 21,106 b/d

*Source: U.S. International Trade Commission

^ Jim Jordan and Associates

As stocks of ethanol soared in September, the price of ethanol should have been attractive to gasoline refiners, enticing them to blend more.

Tom Kloza of the Oil Price Information Service (OPIS) told CNNMoney on October 2 that “[Ethanol’s] cheap, and you can cheapen the price of gasoline.”

Moreover, Kloza noted that “using [a 10 percent ethanol] blend would shave 4 to 10 cents off the price of a gallon of gas.”

“While average demand for the year continues to outpace average production, it is clear that something happened in September that was out of the ordinary,” said RFA President Bob Dinneen.

“Despite the economic advantage ethanol blending offered refiners, and most importantly consumers, the actual blending of ethanol decreased.

"With ethanol-blended fuels offering the opportunity to save consumers up to 10 cents a gallon at the pump, it is baffling why more gasoline blenders were not blending more ethanol.”

For more information, call Mart Hartwig at 202-289-3835.

See Related Websites/Articles:

• Renewable Fuels Association

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