TGIF -- May 10, 2024

Locator: 47109B.

Yes, I know, Cu could have a huge untimely fall. And if it does? A great buying opportunity. 

No recommendation. See disclaimers.

Copper, link here: 

SCCO:

Of interest today: CRH.

UK economy: emerges from recession with 0.6% growth. Compare with  GDPNow US estimate of 4.2% for US.

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SCCO

Updates

May 11, 2024: hidden in this article, the second half on copper.

Original

No recommendation; see disclaimers.

Previously posted: SCCO.

Chart(s) of the day:

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Back to the Bakken

WTI: $79.88.

Sunday, May 12, 2024: 18 for the month; 82 for the quarter, 281 for the year
39407, conf, Whiting, Olson 31-31HU,
39406, conf, Whiting, Olson 31-31-4H,
38737, conf, Petro-Hunt, Hartman 144-97-5A-8-3H,

Saturday, May 11, 2024: 15 for the month; 79 for the quarter, 278 for the year
39349, conf, Hess, TI-T Lalim-157-95-0214H-2,  

Friday, May 10, 2024: 14 for the month; 78 for the quarter, 277 for the year
40268, conf, Eagle Operating, Skaufel 5-10,
40118, conf, Neptune Operating, Heen South 5-8-17 6H,

RBN Energy: feedstock choices, subsidies can significantly swing renewable diesel margins.

How can a business survive and thrive while spending $5.30 to make a product that sells for $1.90? That’s what’s happening in the booming renewable diesel (RD) market, where government subsidies allow RD to compete directly with petroleum diesel even though RD is inherently more costly to produce. But as new plants keep coming on stream, RD profit margins are coming under closer scrutiny. In today’s RBN blog, we analyze RD profit margins and show how they are changing as the market continues to expand.

RD is made in oil refineries using bio-feedstocks like soybean oil and used cooking oil (UCO) instead of petroleum feedstocks. In Part 1 of this series, we examined how demand for different bio-feedstocks is stressing supply chains as RD producers compete for market share. The outcome of this feedstock competition is critical for the RD sector, which operates with “upside-down economics” that allow its product to remain competitive with petroleum diesel. How exactly does that work in real life? Let’s run the numbers.