Recent federal data analyzed by the Renewable Fuels Association for the week ending August 28, ethanol production eased one percent. Production remained nine percent below the same week in 2019 due to the continuing effects of the COVID-19 pandemic.
The four-week average ethanol production rate declined 0.2 percent, equivalent to an annualized rate of 14.16 billion gallons. Ethanol stocks grew 2.3 percent, which was 12.3 percent below year-ago volumes. Inventories increased across all regions except the Gulf Coast. The volume of gasoline supplied to the U.S. market, a measure of implied demand, contracted by 4.1 percent.
Gasoline demand remained 7.2 percent lower than a year ago. Meanwhile, this week, GasBuddy reports Hurricane Laura prompted a massive drop in crude oil and gasoline inventories. That news comes as GasBuddy says Labor Day Weekend gas prices are at the lowest levels since 2004. GasBuddy predicts a national average of $2.19 per gallon, down nearly 37 cents from last year and the lowest priced Labor Day since 2004’s $1.82 per gallon average.
