Ethanol production continued to inch higher last week as the domestic supply hit a roughly three and a half year low.

The U.S. Energy Information Administration says production averaged 900,000 barrels a day, up 7,000 on the week, but still 181,000 below a year ago as margins and reduced demand because of COVID-19 take their toll on the industry.

The U.S. supply contracted another 870,000 barrels to 20.164 million, that’s also 2.68 million less than last year and the tightest inventory since the first week of 2017.

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