BOHO Spread Edges Higher  

The RINs market is projecting continued uncertainty surrounding renewable volume obligations (RVOs).  The Spread between biodiesel and ethanol 2021 RINs remains approximately 30 cents.  This seems to imply the market believes there is some possible relief that could be extended to refiners. 

The RIN spread had been as narrow as 11 cents back in June, when the market seemed to believe blend wall concerns would continue.  Prior to that the RIN spread had been as narrow as 6 cents in April.  The narrower the spread the more anxiety there is surrounding ethanol RINs and the possibility that additional biodiesel RINs will be needed to meet RVOs.  Back in 2019, before blend wall concerns became an issue once again, the spread between biodiesel and ethanol RINs had been as wide as 50 cents.

The market is leaning towards refiner relief at this point but is not willing to fully commit to…