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Ethanol Output Falls 1.7% From Record, Energy Department Says

Ethanol output in the U.S. slipped 1.7 percent last week to 938,000 barrels a day from a record the previous week, according to an Energy Department report.

Stockpiles tumbled 4.9 percent to 17.1 million barrels, the steepest decline since Aug. 20, 2010, and the lowest level since Nov. 25, the department said in a report released today in Washington.

Production of conventional gasoline blended with ethanol slipped 0.7 percent to 5.15 million barrels a day. Refiners receive a 45-cent tax credit for every gallon of ethanol blended into the motor fuel.

Denatured ethanol for January delivery declined 1.1 cents, or 0.5 percent, to $2.10 a gallon at 10:35 a.m. New York time on the Chicago Board of Trade, the lowest price since Dec. 9, 2010. Futures have fallen 12 percent this year.

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