U.S. ethanol production fell sharply last week, dropping to its lowest level since early May. Energy Information Administration data analyzed by the Renewable Fuels Association shows production declined 6.5 percent to 1.03 million barrels per day. That equals about 43.2 million gallons of ethanol produced daily. Despite the decline, output remained slightly above year-ago levels and more than 7 percent above the five-year average.

Ethanol inventories also moved lower, falling 2.1 percent to 24.7 million barrels — the lowest level in seven weeks. Exports dropped more than 24 percent, while refiner and blender ethanol inputs fell to a ten-week low. Gasoline supplied to the U.S. market edged slightly higher, but remained below both year-ago levels and the five-year average.

By: NATHAN STUEDLEU.S. ethanol production fell sharply last week, dropping to its lowest level since early May. Energy Information Administration data analyzed by the Renewable Fuels Association shows production declined 6.5 percent to 1.03 million barrels per day. That equals about 43.2 million gallons of ethanol produced daily. Despite the decline, output remained slightly above year-ago levels and more than 7 percent above the five-year average.Ethanol inventories also moved lower, falling 2.1 percent to 24.7 million barrels — the lowest level in seven weeks. Exports dropped more than 24 percent, while refiner and blender ethanol inputs fell to a ten-week low. Gasoline supplied to the U.S. market edged slightly higher, but remained below both year-ago levels and the five-year average.

Ethanol production falls to four-month low