RIN Price Nosedive — It WAS foreseen, it’s cause was COMPETITION, and it WILL continue

Was it foreseen? Yes. From January 2023, Hoekstra Trading clients were analyzing and acting on the growing gap between the D4 RIN theoretical value and its quoted market price. Starting in February, a series of 12 articles on renewable diesel supply was published by University of Illinois economists with quantitative supply/demand analyses and explanations of…

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SREs = 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…

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Attractor – 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…

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How did the RIN price nosedive affect stock prices?

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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A Reliable Attractor – C-Suites questioned on RIN price nosedive

Last week financial analysts asked refining executives about the nosedive in the D4 Renewable Identification number (RIN). From responses to this week’s questioning: Below are 3 excerpts, from Neste and Valero’s 3rd quarter earnings conference calls: 1. Question from Peter Low, Financial analyst, Redburn Atlantic Hi, thanks. Yes it’s one just on the D4 RIN.…

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Hoekstra Trading “D4HT” theoretical RIN price

Hoekstra Trading’s “D4HT” value is the calculated theoretical price of a D4 RIN using an equation published by Scott Irwin, Kristen McCormack, and James H. Stock (IMS) in 2020. It is a theoretical, not an actual value, that is calculated using Hoekstra Trading’s best estimate of the values of the variables and parameters of the…

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Top 3 takeaways from the OPIS 2023 Conference

This year’s top 3 takeaways from Hoekstra Trading’s perspective: Recommendation Anyone with a stake in RINs pricing and economics should get Hoekstra Research Report 10 which includes this Hoekstra IMS RINs pricing spreadsheet that accurately calculates theoretical RIN prices, tracks them versus actual prices and predicts how RIN prices will change with the variables that…

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