Posts by Hoekstra Trading LLC

This chart shows, in green, the price of D4 RINs traded from 2011 through March 2021: The black line represents a theoretical pricing model for the D4 RIN developed by professors at The University of Illinois and Harvard University. Their modeling work shows the D4 RIN price responds in a rational way to changes in…

Here’s Tom Kloza’s latest writeup on Tier 3 and sulfur credit prices: *********** 2021-03-09 04:50:16 EST ***Tier 3 Sulfur Gasoline Resurfaces as Issue for Some Refiners, Importers Some refiners who have complained about the necessity of purchasing expensive Renewable Identification Numbers (RINs) have something else to complain about this week. After a long period of…

This Q&A appeared in the journal PTQ Catalysis March 15, 2021: Q: Is there a route for post-treating gasoline with minimal octane loss? A: George Hoekstra, President, Hoekstra Trading LLC, george.hoekstra@hoekstratrading.com Here are six handles to improve octane/sulfur performance in your gasoline desulfurizer: 1) Feed properties: controllable variables are feed source (FCC naphtha and other…

This Q&A appeared in the journal PTQ Catalysis, March 15, 2021: Q: Is there a route for post-treating gasoline with minimal octane loss? A: Colin Baillie, Segment Manager, Environmental Additives, W. R. Grace & Co, Colin.Baillie@Grace.com; and George Hoekstra, President, Hoekstra Trading LLC, George.Hoekstra@Hoekstratrading.com One way to minimise octane loss in post-treated gasoline is through…

This week Tier 3 gasoline sulfur credits traded over $1,000 / million ppm-gallon. That’s 5 times higher than the bottom price in November 2020, but still far below the pre-lockdown peak. The true demand for Tier 3 credits has not yet emerged. That will happen when the North American refining system fully adjusts to the…

These questions were asked during recent industry conferences: Are there any services that are reporting Tier 3 sulfur credit market prices? Which is more critical for octane loss, percent desulfurization or absolute ppm sulfur in the product? •We use absolute sulfur •Because we know which sulfur compounds are the limiting ones •The ppms of those…

In August 2020, sales of premium gasoline in the United States hit a three year high of 45.8 million gallons/day, the highest since the previous peak of 46.1 million gallons/day in August 2017. Premium gasoline sales have grown since 2007 in a seasonal pattern that peaks in August, shown here in gold in units of…

In 2013, the price of D6 Renewable Identification Numbers (RINs) skyrocketed sixty-fold (not sixty percent!) in weeks, triggering a financial crisis that rocked the US refining industry and is still making news today: The bright colored data shows the 2013-vintage D6 RIN (blue) price snapping up to a new relationship with the D4 RIN (green)…

The 2013 D6 RIN boil over In 2013, the price of D6 RINs skyrocketed sixty-fold in a matter of weeks, triggering a financial crisis that rocked the US refining industry and is still making news today: The bright-colored data shows the 2013-vintage D6 RIN (blue) snapping up to a new relationship with the D4 (green)…

The following questions were asked in two web conferences this summer