Skip to content
Thomson Reuters
Climate & Energy

U.S. renewable fuel credits continue bull run, drive up gasoline margins: traders

Reuters Staff

25 Oct 2017

NEW YORK (Reuters) – U.S. renewable fuel credits (D6) hit $1.00 in early trading on Wednesday, traders said, as prices continue to surge in the wake of the U.S. Environmental Protection Agency’s decision to back off program reforms.

A Valero Energy Corp. gas station is pictured in El Cajon, California, U.S., August 8, 2017. Picture taken August 8, 2016. To match Special Report USA-BIOFUELS/VALERO REUTERS/Mike Blake

The rise in credit prices helped boost U.S. gasoline margins to $18.69 a barrel, a nearly 5 percent jump, traders said.

The U.S. EPA abandoned a series of proposed changes to the nation’s biofuels policy last week after a massive backlash from corn-state lawmakers worried the moves would gut the program.. The moves were aimed at helping U.S. merchant refiners, who argue the cost of the credits are crippling.

The retreat by the EPA helped push the price of the most popular form of credits from about 80 cents last week to $1.00 on Wednesday.

Reporting By Jarrett Renshaw; Editing by Chizu Nomiyama and Andrea Ricci

Our Standards:The Thomson Reuters Trust Principles.
China’s war on smog hits fertilizer, pesticide output in December: stats Zambia drought could slash 2018 maize output by around 50 percent Norway’s $1 trillion fund curbs holdings in biggest CO2 emitters With solar water, trees grow into a sturdy business in Western Kenya Britain must urgently bridge policy gaps to meet emissions target – advisers France plans to accelerate wind power projects 2018 could see wave of West Coast climate pollution pricing Roof gardens and recycling: Indian cities find ways to go green More green power could curb India’s water, electricity gap – researchers Without rain, South Africa’s Cape Town may run out of water by April