Ethanol Production Eases Amid Softening Gasoline Demand

U.S. ethanol production eased slightly last week but remained above its five-year average as gasoline demand softened and fuel inventories increased.

The Renewable Fuels Association reported that production fell 1% to 1.10 million barrels per day, equivalent to 46.16 million gallons daily.

This decline was largely driven by a 4.2% drop in gasoline supplied to 8.55 million barrels per day, the lowest weekly level since late February, according to Energy Information Administration data.

However, exports provided a boost, rising 41% to 147,000 barrels per day, which helps offset weaker domestic blending demand and supports ethanol production for corn use.