A drop in ethanol and gasoline production, paired with a build in stocks of both, indicates a significant slow down in implied demand, according to this week’s DoE fuel dataset. Ethanol production dropped 1.3% this week to 952Mbbl/d, with a build on stocks of 0.4%. Ethanol inventory levels are sitting considerably higher than both last year and the 5 year average of 17,786Mbbl. Gasoline production slumped 4.5% this week to 9,782Mbbl/d after hitting one year highs last week. After a draw in stocks last week, gasoline stocks built 0.8%.
Crude oil production dropped again to 9,337Mbbl/d, down 0.1% WoW, with a draw on stocks of 1.2%, as world oil prices hit a 6 year low on Monday amid expectations of softer Chinese demand. Distillates production slowed down noticeably by 3.3%, matched with a build on stocks of 1%.