Archive for November 2023
Welcome to the Future – Part 1 – Sulfur credit Investments Pay Off 10-Fold For Forward-Looking Refiners
Last month, the price of the Tier 3 gasoline sulfur credit hit a new high of $3,600 per credit, up by a factor of 10 from 2 years ago. This tradable credit allows refiners to sell gasoline that exceeds the 10 ppm sulfur specification on gasoline sold in the United States. In today’s blog, we…
Read MoreSREs = Sustainable Revenues for Expensive lawyers
Will it ever end? What’s the effect on RIN prices? What’s the cost? The acronym SRE is something you will see a lot if you follow the world of renewable fuels and Renewable Identification Numbers (RINs). SRE means Sustainable Revenues for Expensive lawyers. It involves a dispute about Small Refinery Exemptions granted during the Trump…
Read MoreAttractor – A RIN Price Model That Accurately Calculates RIN Prices
Hoekstra Trading’s Attractor RIN price model is a spreadsheet that calculates the theoretical value of the D4 Renewable Identification Number (RIN) and enables the user to study theoretical vs. market RIN prices. The theoretical value is calculated using Hoekstra Trading’s spreadsheet application of the Irwin-McCormack-Stock (IMS) equation which is based on fundamental economic theory The…
Read MoreRIN Price Nosedive Part 2 — Was it Foreseen? What Was The Cause? Will It Continue?
The question and answer segment of Darling Ingredients’ Nov 8, 2023 earnings conference call was dominated by questions about the outlook for renewable diesel margins. This focus was triggered by last quarter’s 50% D4 RIN price nosedive and a corresponding nosedive in Darling’s stock price as seen on the right hand side of this 2-year…
Read MoreRINs and Stock Prices – Financial Analysts Grill C-Suite Executives
The recent nosedive in the price of Renewable Identification Number (RIN) credits, from $1.60 to 80 cents, has financial analysts asking refining executives how falling RIN prices might affect their future profits. For example, from last week: How do you see the RIN dynamics impacting your renewable product sales margin considering the renewable volume obligation…
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