Ethanol Strengthens Against Gasoline on Signs of Lower Output

Ethanol strengthened against gasoline on speculation that plant closings and lower output will help alleviate a glut.

The biofuel’s discount to gasoline narrowed 0.76 cent a day after Aemetis Inc., a U.S. ethanol manufacturer, said it idled its plant in Keyes, California, absent a profit to make the additive. A Jan. 16 Energy Information Administration report showed production sank to 784,000 barrels a day last week, the lowest level since the Energy Department’s analytical agency began reporting data in June 2010.