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U.S. Ethanol Production Declines 0.7%, Energy Department Says

U.S. ethanol output slipped 0.7 percent last week, the second straight decline, to 885,000 barrels a day, according to the Energy Department.

Stockpiles of the gasoline additive climbed 1.8 percent to 17.1 million barrels, the most since Sept. 24, the department said today in Washington.

Production of conventional gasoline blended with ethanol tumbled 6.8 percent to 4.52 million barrels a day, the steepest decline since May 1, 2009. That’s the lowest level since April 30. Refiners receive a 45-cent tax credit for every gallon of ethanol blended into gasoline.

Denatured ethanol for December delivery rose 2.2 cents, or 1 percent, to $2.128 a gallon at 9:47 a.m. local time on the Chicago Board of Trade. Prices have gained 9.1 percent this year.

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