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Ethanol Output in U.S. Falls Third Week, Energy Department Says

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Jan. 25 (Bloomberg) -- Ethanol production in the U.S. fell 0.7 percent to 934,000 barrels a day, the lowest level since Nov. 25, according to an Energy Department report.

The third consecutive weekly drop matches the longest such streak since the period ended Sept. 23. Stockpiles climbed 1.4 percent to 19.8 million barrels, the highest level since the week ended May 27, the department said in a report released today in Washington. Inventories have swelled six straight weeks, the longest streak since Jan. 21, 2011.

Production of conventional gasoline blended with ethanol increased 0.3 percent to 4.86 million barrels a day, the highest level since Dec. 23, the report showed.

Denatured ethanol for February delivery rose 0.5 cent, or 0.2 percent, to $2.18 a gallon at 10:42 a.m. New York time on the Chicago Board of Trade.

To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.

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