U.S. ethanol production surged last week as the domestic supply shrank to multi-month lows.

The U.S. Energy Information Administration says production averaged 978,000 barrels a day, an increase of 64,000 on the week following an improvement in margins and a jump of 55,000 on the year, when production was limited by concerns about demand.

Stocks hit their lowest level since May at 19.931 million barrels, down 289,000 from the previous week but 259,000 from a year ago.

…