For My Benefit: I Can Never Remember RINS
Platts is reporting as way of background:
RINs prices have soared for much of 2013 on aggressive buying ahead of
the impending "blend wall." The term describes when the maximum amount
of the US gasoline pool has been blended with 10% ethanol. Refiners will
then be under pressure to run higher ethanol blends or buy RINs, unless
Congress is pressured to alter the RFS.
The EPA issues a RIN to track renewable fuel usage throughout the supply chain.
Refiners,
importers and blenders -- called "obligated parties" -- use them to
show the EPA that they have fulfilled their mandated government use of
renewable fuels. If the obligated party has not used enough physical
product, it can buy RINs to satisfy the quota.
Now, the news:
All current-year US RINs assessments strengthened for the sixth straight
session Monday, marking the first such streak since Platts began the
advanced biofuel (D5) assessment on January 3, 2011.
Platts began assessing corn-based ethanol (D6) RINs in 2009 and biomass-based diesel (D4) in 2010.
Corn-based
ethanol (D6) RINs for 2013 were assessed 1 cent higher at $0.8150/RIN,
and both current-year advanced biofuel (D5) RINs and biomass-based
diesel (D4) RINs a half-cent higher at $0.90/RIN and $0.95/RIN,
respectively.
Buying interest heated up last week after a week-long selloff that
followed the US Environmental Protection Agency's August 6 announcement
of a four-month extension for meeting 2013 Renewable Fuel Standard-2
blending requirements, sources said.
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