U.S. biofuel credit prices jump in early morning trade
Renewable fuel credits for 2019 traded about five cents higher each on Tuesday as buyers were active in early morning trade, market participants said.
D6 credits traded as high as 15 cents apiece, up from 10.25 cents each the previous session, traders said.
RIN prices strengthened due to “lots of refiners asking for offers,” one trader said.
The credits are used by oil refiners and importers to show compliance with EPA-mandated ethanol blending quotas for petroleum-based fuels. They are generated with every gallon of biofuel produced.
Prices have been under pressure since the U.S. Environmental Protection Agency (EPA) granted 31 small refinery biofuel waivers for 2018 earlier this month. (Reporting by Stephanie Kelly; Editing by David Gregorio)
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