- Prices for renewable fuel credits are fluctuating after the EPA granted bankrupt refiner Philadelphia Energy Solutions significant relief from its biofuel obligations.
- Prices for D6 renewable fuel credits for 2018 traded at $0.35 this morning before rising to $0.39, little changed from yesterday, traders say.
- The refiner will have to satisfy only about half of its $350M in outstanding compliance obligations under the U.S. Renewable Fuel Standard and will be not have to go into the market and buy ~250M compliance credits covering 2016, 2017 and part of 2018.
- Traders say the settlement alleviates fears that the refinery was going to be exempt from the RFS program or be allowed to dump millions of credits onto the market, but it also raises concerns among biofuels producers that other independent refiners also may seek relief.
- Potentially relevant tickers include VLO, PBF, MPC, CVI, CVRR, ADM, GPRE, PEIX, REX, REGI
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