Ethanol Discount to Gasoline Widens After U.S. Production Rises
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Ethanol’s discount to gasoline widened after the U.S. reported production rose to a 16-month high and inventories dropped to the lowest level on record.
The spread expanded 4 cents to 84.88 cents a gallon after output increased 1.6 percent to 911,000 barrels a day in the week ended Oct. 25, the most since June 8, 2012, according to the Energy Information Administration. That was above the 907,000-barrel average of 11 analyst estimates compiled by Bloomberg. Inventories fell 3.5 percent to 15 million barrels, the least in EIA data going back to 2010.