U.S. refiners' biofuel bills soar in oil market slump

  • 📰 Reuters
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 97%

Australia News News

Australia Australia Latest News,Australia Australia Headlines

U.S. oil refiners this quarter are expected to spend the most since at least 2018 to meet U.S. biofuels requirements, further pressuring margins hit by the collapse since March in global prices and demand.

FILE PHOTO: Large tanks of Gasoline and Ethanol are shown at a gasoline distribution terminal in San Diego, California January 7, 2015. REUTERS/Mike Blake

RIN prices had also risen earlier this year after a U.S. court in January ruled the Trump administration must reconsider three waivers it previously handed out to refineries that exempted them from the blending laws. The higher RIN costs, combined with lower margins because of the coronavirus pandemic, have added a sense of urgency to the ongoing debate in Washington, D.C. around the blending requirements. Lawmakers from heavy oil-producing states have called for relief to refiners during the pandemic, citing in part the increased RIN prices.

Refiners paid about $446 million in the second quarter for these compliance credits, a Reuters review of regulatory filings from five publicly listed refiners that disclose the numbers show.Tudor Pickering Holt and Co analyst Matthew Blair estimates current-quarter RIN costs at $1.39 per barrel for refiners that do not blend, the highest in more than two years and up from $1.18 on average in the second quarter and 52 cents a year ago.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Airline stocks surge after TSA reports highest traveler numbers since March | Markets InsiderThe Transportation Security Administration on Monday reported that 831,789 travelers passed through its checkpoints on Sunday — the highes...
Source: BusinessInsider - 🏆 729. / 51 Read more »