US renewable fuel credits rally to multi-month highs despite Trump reelection
By Shariq Khan
NEW YORK, Nov 8 (Reuters) -U.S. renewable fuel credits rose to multi-month highs on Friday on increased demand from refiners trying to comply with mandates and higher prices for soyoil, surprising traders who expected Donald Trump's reelection as U.S. president to weigh on the market.
Rising prices for the credits, also called Renewable Identification Numbers (RINs), are welcome news for biofuel producers who depend on them to make up for high output costs. However, they also worsen the pain for petroleum refiners whose profit margins have slumped sharply this year due to oversupply and weak demand.
Prices for both the D4 RINs RIN-D4-US, issued to biomass-based diesel producers, and the D6 RINs RIN-D6-US, issued to ethanol suppliers, rose as high as 79 cents each on Friday, traders said.
Those are the highest levels since January, according to LSEG data.
The U.S. government mandates mixing of low-carbon fuels in the country's transportation fuel mix, and issues RINs to companies supplying them. Refiners who do not meet their targets can buy RINs from others or risk fines.
Trump's victory in this week's U.S. elections had led to speculation that small refineries will find it easier to get exemptions to their RIN generation targets under his administration, OPIS analyst Tom Kloza said.
However, Trump has not yet outlined any plans to do that.
"There's uncertainty around whether Trump will reintroduce widespread small refinery exemptions, so some small refiners may be buying now to avoid being caught short," said Alex Hodes, analyst at energy brokerage StoneX.
Market participants also expect fewer RINs to be available for trade next year, partly due to tighter government mandates and weak fuel demand reducing renewables blending, said Will Faulkner, founder of industry analysis firm Carbon Acumen.
Meanwhile, soybean oil prices have also rallied this week on expectations that Trump could impose tariffs on imports of biofuel feedstocks.
Higher prices for feedstocks erode producer margins, making them price their RINs higher, said Paul Niznik, director of energy at consultancy firm Capstone.
Reporting by Shariq Khan in New York
Editing by Marguerita Choy
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
