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.
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. San Antonio-based Valero Energy Corp in its post-earnings call raised its estimates for RIN expenses this year by US$100 million to between US$400 million and US$500 million. Last year it spent US$318 million.
Graphic: Top refiners' second quarter biofuel bills Top refiners' second quarter biofuel bills https://graphics.reuters.com/USA-BIOFUELS/xlbvgbxqgpq/chart.png