Yes, water vapor contained in the air within the fuel tank can condense on the cool inside surfaces of the fuel tank. This water can be absorbed by the fuel, both gasoline or gasoline/10% ethanol blend. Reducing the ability of the tank to breathe in air is good practice regardless of the fuel used. Most carburetors are vented in some manner, therefore fuel in the float bowl is also subject to breathing and water condensation.
Best practice for me is: store with the tank full, limit venting, use a tank shut off valve, either drain the float bowl or run the engine until it drains the bowl.
It is interesting (at least to me) to note that gasoline @ 60 degrees can absorb 0.15 teaspoons of water. Conversely, gasoline/10% ethanol @ 60 degrees can absorb 3.8 teaspoons of water before separation occurs. It is my feeling that if you have water problems with a gasoline/ethanol blend the fuel may have been "wet" at the time of purchase.
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Today's Featured Article - A 1937 John Deere Unstuck - by Gary Hickman. Here is my story of how I got the pistons out of a 1937 JD B that the engine had been stuck for about 14 years: About 12 years ago my Dad gave me one of the tractors I ran as I was growing up on our farm in central Nebraska. The engine on this tractor, a 1937 John Deere "B", had been stuck for 2 years before he gave it to me. This last spring (1999) I hauled the tractor to our 2 acre lot in St. Libory Nebraska where it joined my antique machinery collection, at that time a 1929 Caterpillar T
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